NOVEMBER 18, 2022 — 1,500 EMPLOYEES TARGETED
The company is laying off about 1,500 people, or 8% of its workforce, following a plunge in the company’s stock, a weakening used vehicle market, and concerns around the company’s long-term trajectory, according to an email from CEO Ernie Garcia.
Hey Everyone,
Today is a difficult day. The world around us has continued to get tougher, and to do what is best for the business, we have to make some painful choices to adapt.
These changes include adjusting the way we work together, and taking on less while channeling more of our focus to our most important and impactful projects.
They also include reducing costs and getting more efficient across the business. Those choices are hard. They require work. But they aren’t painful.
The painful choice is to say goodbye to members of our team who we all know and care about. Today we are reducing the size of our team by approximately 1,500 people, which represents about 8% of our company.
These reductions impact many Corporate and Technology teams as well as some Operations teams where we are eliminating roles, locations, or shifts to match our size with the current environment.
In the next 30 minutes, we will be sending emails to everyone in Corporate and Tech, letting you know whether or not you are impacted by today’s changes, while those in Operations groups or field roles will be meeting with managers in the next couple of hours. Everyone will learn exactly where their role and team stand today.
May 24, 2022 — Original post…
Tempe, Arizona-based Carvana, an online used car retailer known for its multi-story car vending machines, has announced a restructuring that will see the rearrangement of its operational hubs leading to a mass layoff event impacting at least 2,500 employees nationwide and mostly affecting those in operational positions within Carvana.
According to Carvana CEO Ernie Garcia...
"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"
“It has always been the right move to start building for growth well ahead of when we expect it to show up. This strategy worked for us every year until this one."
I wish the burden were shared more evenly across the company, but our operations teams have grown the most over the last several months and are therefore furthest out of balance with the sales we are seeing.
"Saying goodbye to any team member is not a decision we take lightly and we aim to be transparent, thoughtful and supportive throughout this process, including providing meaningful assistance, resources and support to impacted team members.
"We believe these decisions, while extremely difficult, will result in Carvana restoring a better balance to our operations and facilitate the company returning to efficient growth on its mission to change the way people buy and sell cars."
A statement filed with the Securities and Exchange Commission explains the situation...
"On May 10, 2022, Carvana Co. announced a workforce reduction of approximately 2,500 employees primarily in operational groups in connection with its previously announced plans to better align staffing and expense levels with sales volumes."
"In connection with these right-sizing initiatives, over the next several weeks Carvana will be transitioning operations away from its Euclid, OH IRC and a few logistics hubs."
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
