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Carvana is laying off about 1,500 people, or 8% of its workforce, following a freefall in the company’s stock this year and concerns around its long-term trajectory.
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The email from Carvana CEO Ernie Garcia cites economic headwinds including higher financing costs and delayed car purchasing.
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He says the company “failed to accurately predict how this would all play out and the impact it would have on our business.”
The email from Carvana CEO Ernie Garcia, titled “Today is a hard day,” cites economic headwinds including higher financing costs and delayed car purchasing. He says the company “failed to accurately predict how this would all play out and the impact it would have on our business.”
The layoffs mainly impact employees in Carvana’s corporate and tech departments as well as some operational roles where it is “eliminating roles, locations or shifts to match our size with the current environment,” according to the letter.
Garcia said impacted employees will receive separation and severance pay, extended healthcare coverage for three months and other other benefits.
“To those impacted, I am sorry,” Garcia said. “As you all know, we made a similar decision to this one in May. 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.”
Full article: https://www.cnbc.com/2022/11/18/carvana-to-lay-off-1500-employees-amid-economic-uncertainty-.html
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