Carvana Slashes Staffing

By Staff Writer May 12, 2022

Carvana Co. will lay off approximately 2,500 employees primarily in operational groups in connection with its previously announced plans to better align staffing and expense levels with sales volumes.

All impacted team members will have the opportunity to receive four weeks of pay plus an additional week for every year they have been with Carvana, according to an SEC filing. Impacted team members will also have the opportunity to receive extended healthcare coverage, pay equal to early vesting of certain previously granted equity awards, recruiting and résumé support, and continuing participation in certain other company programs.

The executive team is foregoing their salaries for the remainder of the year to help contribute to the severance pay for departing team members.

Over the next several weeks Carvana will be transitioning operations away from its Euclid, Ohio, IRC and a few logistics hubs.

Carvana, in its release, stated “these decisions, while extremely difficult, will result in Carvana restoring a better balance between its sales volumes and staffing levels and facilitate Carvana returning to efficient growth on its mission to change the way people buy and sell cars.”

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Last modified on Tuesday, 17 May 2022 14:35