Carvana to lay off 2,500 employees; shares continue to crater

Posted at 11:22 AM, May 10, 2022
and last updated 2022-05-10 15:24:50-04

PHOENIX — Carvana Co. said Tuesday that it will lay off 2,500 workers nationwide, on the same day that the Tempe-based online vehicle retailer said it had finalized its $2.2 billion acquisition of U.S. auto auctioneer Adesa.

In a regulatory filing, the company said the affected employees will receive four weeks of pay plus an extra week of pay for each year they have been with Carvana (Nasdaq: CVNA), and will have an opportunity to receive extended health care coverage and compensation equal to any early vesting of previously granted equity awards.

The layoffs represent more than 10% of the company's 21,000 employees. Carvana gave no indication in the filing when the layoffs would go into effect.

The company said it will also begin to transition operations away from its facility in Euclid, Ohio, and several other unidentified logistics hubs.

In addition, the company’s executive team members will forego their base salaries for the remainder of the year.

Read more of this story from the Phoenix Business Journal.