Used-car retailer Carvana Co. is cutting 1,500 jobs, or 8% of its workforce, the company stated on Friday, amid waning demand for utilized cars on the back of sky-high prices and supply shortages.
Demand for utilized cars has been negatively impacted by hybrid-working models and higher costs cautilized by rising interest rates, as consumers rebelieve personal mobility options to test and trim their daily expenses.
CNBC, which first reported the layoffs, cited an internal memo, that the company faced economic headwinds from higher financing costs and it “failed to accurately predict how this would all play out and the impact it would have on our business.”
Carvana, whose shares were down about 7% at noon, has missed expectations for adjusted earnings in the last five quarters, per Refinitiv data, as expenses soared and demand for utilized cars dipped.
The company, best known for its automated car vconcludeing machines, earlier this year laid off around 2,500 employees, or 12% of its workforce, in a bid to cut costs among its other measures.
(The-CNN-Wire & 2022 Cable News Network, Inc., a Time Warner Company. All rights reserved.)
Leave a Reply