Carvana (CVNA) to lay off 8% of workforce amid 'strong headwinds' - Phoenix Business Journal

Tempe-based Carvana Co. has slashed 8% of its workforce, which amounts to roughly 1,500 workers. It's the second major round of job cuts announced by the online used-car retailer this year.

The impact the layoffs will have on the Valley workforce for Arizona's third-largest public company isn't immediately known. In a document obtained by the Business Journal from a person familiar with the matter who asked not to be identified, Carvana CEOThe 1,500 job cuts will impact"many corporate and technology teams as well as some operations teams where we are eliminating roles, locations or shifts to match our size with the current environment.

Employees affected by the latest round of job cuts will receive severance pay through Jan. 1, 2023 with an additional week of severance pay for every full year with the company; cash value of unvested equity awards; priority consideration when the used car retailer begins hiring again, among other severance benefits, according to the letter.

"It is fair to ask why this is happening again, and yet I am not sure I can answer it as clearly as you deserve. I think there are at least a couple of factors. The first is that the economic environment continues to face strong headwinds and the near future is uncertain. This is especially true for fast-growing companies and for businesses that sell expensive, often financed products where the purchase decision can be easily delayed like cars.

The company has faced tough sledding on Wall Street in 2022 despite a $2.2 billion acquisition of U.S. auto auctioneer Adesa deal earlier this year. When the stock market opened on Jan. 3, CVNA shares were trading at $234.38. Carvana opened trading Friday at $8.59 a share, which has since fallen to $7.80 amid the news of the job cuts.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

OneTen CEO Maurice Jones on untapped talent, skills-based hiring and more - Jacksonville Business JournalNew data shows employers are leaving talent on the sidelines at a critical time. This CEO is tackling the problem. Here's his advice to businesses.
Source: JaxBizJournal - 🏆 599. / 51 Read more »

Apple to buy chips from Arizona semiconductor plant, report says - Phoenix Business JournalApple CEO Tim Cook made the remarks during a visit to Germany, seemly referring to the Taiwan Semiconductor Manufacturing Co. plant under construction in north Phoenix.
Source: phxbizjournal - 🏆 254. / 63 Read more »

Phoenix woman Celestine Strong faces federal prison in PPP loan fraud case - Phoenix Business JournalCourt documents show that the woman had conspired to submit loan applications with falsified employee and wage information and fake bank statements in an attempt to secure millions of dollars in PPP loans.
Source: phxbizjournal - 🏆 254. / 63 Read more »

HonorHealth outbids Banner Health in Valley land auction - Phoenix Business JournalA bidding war between two nonprofit hospital systems for a highly coveted parcel in north Scottsdale ratcheted up the price of the land by 68%.
Source: phxbizjournal - 🏆 254. / 63 Read more »

Arizona Cardinals Owner Michael Bidwill lists Paradise Valley home - Phoenix Business JournalThe owner of the Arizona Cardinals is selling his Paradise Valley home. But don't worry, says the luxury real estate agent who listed the home, he's not leaving Arizona. Here's a sneak peek into the home that has hosted Super Bowl parties and other philanthropic events.
Source: phxbizjournal - 🏆 254. / 63 Read more »