Carvana cuts 2,500 jobs, execs to forego pay for severance

By AP News

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DETROIT (AP) — Online automotive retailer Carvana Co. says it's letting go about 2,500 workers, roughly 12% of its workforce, as it tries to bring staffing and expenses in line with sales.

DETROIT (AP) — Online automotive retailer Carvana Co. says it's letting go about 2,500 workers, roughly 12% of its workforce, as it tries to bring staffing and expenses in line with sales.

The Phoenix company said in a regulatory filing Tuesday that its executive team is giving up salaries for the rest of the year to help fund severance pay for the workers.

Carvana, which sells online and delivers used vehicles to buyers, says the laid-off workers will come from operational groups. The company says it will be “transitioning operations" away from its auto reconditioning center in Euclid, Ohio, near Cleveland, as well as from some logistics hubs.

The filing said the moves are difficult, but will “facilitate Carvana returning to efficient growth on its mission to change the way people buy and sell cars."

The layoffs come just a few weeks after Carvana posted a $506 million loss in the first quarter, six times larger than the same period a year ago.

The company also recently acquired Adesa U.S.'s used vehicle auction business for $2.2 billion.

Carvana shares fell 5.4% Tuesday to $36.68. They are down 84% so far this year.

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This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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