Carvana to lay off 2,500 employees; shares continue to crater

[1srelluc]

PHOENIX — Carvana Co. said Tuesday that it will lay off 2,500 workers nationwide, on the same day that the Tempe-based online vehicle retailer said it had finalized its $2.2 billion acquisition of U.S. auto auctioneer Adesa.

In a regulatory filing, the company said the affected employees will receive four weeks of pay plus an extra week of pay for each year they have been with Carvana (Nasdaq: CVNA), and will have an opportunity to receive extended health care coverage and compensation equal to any early vesting of previously granted equity awards.


The layoffs represent more than 10% of the company's 21,000 employees. Carvana gave no indication in the filing when the layoffs would go into effect.

The company said it will also begin to transition operations away from its facility in Euclid, Ohio, and several other unidentified logistics hubs.

In addition, the company’s executive team members will forego their base salaries for the remainder of the year.

Carvana to lay off 2,500 employees; shares continue to crater

Must be the Ultra-Maga's fault.

 

[fncceo]

Which brings up the question, Why, when a companies business model depends on automation and online sales, do they need such a large workforce?

 

[JustAGuy1]

My experience with them was very good .
I love my vehicle.

 

[White 6]

PHOENIX — Carvana Co. said Tuesday that it will lay off 2,500 workers nationwide, on the same day that the Tempe-based online vehicle retailer said it had finalized its $2.2 billion acquisition of U.S. auto auctioneer Adesa.

In a regulatory filing, the company said the affected employees will receive four weeks of pay plus an extra week of pay for each year they have been with Carvana (Nasdaq: CVNA), and will have an opportunity to receive extended health care coverage and compensation equal to any early vesting of previously granted equity awards.


The layoffs represent more than 10% of the company's 21,000 employees. Carvana gave no indication in the filing when the layoffs would go into effect.

The company said it will also begin to transition operations away from its facility in Euclid, Ohio, and several other unidentified logistics hubs.

In addition, the company’s executive team members will forego their base salaries for the remainder of the year.

Carvana to lay off 2,500 employees; shares continue to crater

Must be the Ultra-Maga's fault.

I guess they picked up about 11,000 employees with the acquisition of auto action company, Adesa, according to Adesa's company profile "about us" page.

 

[DGS49]

About two months ago, I traded my '16 VW Touareg for a '19 Jetta GLI. Everything ended up fine, although there were a few minor glitches. Overall, I'm very happy with the deal and the car I bought.

 

[candycorn]

Carvana worked for me very well.

I'm not so sure it worked out well for Carvana. They way overpaid for a car I inherited.

So I can see why they are laying off people...

 

[Harpy Eagle]

Must be the Ultra-Maga's fault.

Or it could be they over extended based on their results during the pandemic and now that people have returned to normal they are losing business.

Not everything happens because of partisan politics.