Carvana to Lay Off 12% of Its Workforce, Ignites ‘Mass Hysteria’

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After a $ 506 million loss in the first quarter, Carvana is cutting costs, starting with staff. The online car retailer, which sells and delivers used vehicles, will lay off 2,500 workers and first shared the news in a vague email for the entire company warning workers of what was to come.

On Tuesday, the company sent an ominous morning email, indicating that there would be major layoffs, but without indicating who would be affected. Email resulted in “massive hysteria at 7:30 p.m.“According to a worker who later learned that she would be fired while on maternity leave.

The layoffs were aimed primarily at operational positions and told most affected employees through Zoom, many of whom turned to social media to express their disappointment and concern. “You just fired us at a zoom meeting and at the end you said, ‘Have a good day. You should be ashamed.’ Tweet shared. In light of the news, executives have decided to give up their salaries for the rest of the year to help fund severance pay.

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Carvana cited recent financial struggles over the decision to cut its workforce. “While Carvana continues to grow, our growth is slower than 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, “the company said.

It seems that Carvana already has a clear idea of ​​what these needs are. On the same day of the layoffs, the company announced that it would spend $ 2.2 billion at various Kar Auction Services used car auction sites.

As of Tuesday, Carvana shares were down 5.4%, down 84% so far this year.

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