Online News Magazine
Online-only used car retailer Caravana laid off 1,500 employees on Friday amidst slower sales and falling stock prices. Photo courtesy of Caravana
Nov. 18 (UPI) — Caravana laid off 1,500 employees on Friday amid falling stock prices. The layoffs come two weeks after lower-than-expected performance prompted a stock selloff.
“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,” Caravan CEO Ernie Garcia wrote in an email to employees obtained by CNBC.
The layoffs mainly affected employees in the corporate and tech departments.
The online-only used car retailer’s sales skyrocketed during the COVID-19 pandemic, with stocks reaching an all-time intraday high of $376.83 per share on Aug. 10, 2021.
The surge in business left Caravan with too few vehicles to match demand, prompting the company to purchase online car retailer ADESA and a large number of vehicles at high prices.
Demand tapered off amid higher interest rates and economic uncertainty, leading to a dramatic 97% stock price decrease this year.
Caravan laid off 2,500 employees in May while the executive team agreed to forgo the rest of their 2022 salaries.
Carvana’s stocks fell from $8.56 per share at 9:30 a.m. to $8.06 per share as of 4 p.m. on Friday.
Tech companies including Twitter, Facebook’s parent company Meta, and Amazon, have all announced significant layoffs this year.
0 Comments :
Post a Comment