Vending

Carvana to continue layoffs as sales decline

Image provided by Carvana.

January 13, 2023

Carvana, an e-commerce platform for buying and selling used cars online that offers a car vending machine, plans to lay off more workers and reduce work hours in response to weak sales, according to a Yahoo Finance report citing the The Wall Street Journal.

Open positions have gone unfilled while several operations teams have worked less than 30 hours a week or four-day work weeks, the report noted, citing internal emails and input from former employees.

Company shares were down close to 9% in premarket trade on Friday, one day after surging nearly 40% from interest from retail investors.

Carvana laid off around 4,000 employees in 2022 in response to debt from acquiring cars at elevated costs.

Used car demand has declined over the past year as consumers opted for alternative ways to commute in efforts to trim expenses.