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Friday, November 18, 2022

Carvana (CVNA) lays off 1,500 employees

  • Carvana is laying off about 1,500 people, or 8% of its workforce, following a free fall in the company’s stock this year and concerns around its long-term trajectory.

  • The email from Carvana CEO Ernie Garcia cites economic headwinds including higher financing costs and delayed car purchasing.

  • He says the company “failed to accurately predict how this would all play out and the impact it would have on our business.”

Carvana is laying off about 1,500 people, or 8% of its workforce, Friday following a free fall in the company’s stock this year, a weakening used vehicle market and concerns around the company’s long-term trajectory, according to an internal message first obtained by CNBC’s Scott Wapner.


The email from Carvana CEO Ernie Garcia, titled “Today is a hard day,” cites economic headwinds including higher financing costs and delayed car purchasing. He says the company “failed to accurately predict how this would all play out and the impact it would have on our business.”

Carvana stock closed Friday at $8.06 per share, down by 3.1%. Carvana’s stock has plummeted by about 97% this year after reaching an all-time intraday high of $376.83 per share on Aug. 10, 2021.

Charts 2 years later:

 
 
 

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