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Tempe-based Carvana to lay off 2,500 people

Carvana File Photo
Carvana File Photo((Photo: Business Wire via AP))
Published: May. 10, 2022 at 12:08 PM MST
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TEMPE, AZ (3TV/CBS 5) -- Popular car-buying service and Tempe-based business Carvana is announcing mass layoffs as the company plans to downsize. Carvana made the announcement in a filing with the federal Securities and Exchange Commission on Tuesday. The company said it plans to let go of 2,500 people, or about 12% of its workforce, as they look to “better align staffing and expense levels with sales volumes.” Most of those jobs are in Ohio and “a few logistic hubs,” the notice said.

Arizona’s Family received the following statement from a Carvana spokesperson, which read in part: “While Carvana is still growing, our growth is slower than what we originally prepared for in 2022, and we made the difficult decision to reduce the size of certain operations teams to better align with the current needs of the business.”

Tempe-based Carvana is laying off 2,500 people

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.

The company also said they were working to provide assistance, resources, and additional support to those laid off. According to Automotive News, executives will not get paid for the rest of the year “to help contribute to the severance pay for departing team members.”

As of Tuesday morning, the company has dozens of positions open at its Tempe location.