Tempe-based Carvana lays off 2,500 and buys $2.2 billion business
At the end of 2021, Carvana had more than 20,000 full- and part-time employees. On Tuesday, the Tempe-based company had 2,500 fewer positions. The layoff announcement came the same day Carvana closed a deal worth more than $2 billion.
The online used vehicle retailer is best known for its automated car vending machines — there’s one along Loop 202 in Tempe.
Reuters reports Carvana missed earnings expectations in the last three quarters. In a written statement to KJZZ News, Carvana said, “Recent macroeconomic factors have pushed automotive retail into recession. 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.”
On Tuesday, Carvana bought an auto auction business called ADESA for $2.2 billion. The deal includes all auction sales, operations and staff at 56 U.S. logistics centers, which Carvana expects will bring a broader selection and faster delivery times for customers.
Carvana told Reuters all impacted employees would receive four weeks of pay and an additional week for every year with the company, and its executive team would forgo their salaries for the rest of the year.
