Carvana laid off 2,500 employees, many of them over Zoom (updated)
On Tuesday, online used car retailer Carvana laid off 12 percent of its workforce, reports Protocol. According to Twitter reports, the startup incited “mass hysteria” among workers when it sent a company-wide email at 7:30AM informing everyone of the impending job cuts but not specifying who would be affected. In the end, Carvana told approximately 2,500 workers, many of them in “operational positions,” they no longer had a job with the company. The startup shared the news in person and in a Zoom call some employees said was pre-recorded, a claim Carvana strongly disputes.
“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,” a spokesperson for Carvana told Engadget. “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.”
Fuck @Carvana. You just fired us in a zoom meeting and said “have a good day” at the end. You should be ashamed. Many people have children, rent to pay, and responsibilities. I am so disgusted by how this was handled
— Izzy (@OrangeCreamy11) May 10, 2022
Despite finding success early in the pandemic, Carvana has struggled recently. During its first-quarter earnings call, the company reported a $260 million net loss, and it blamed the layoffs on the financial headwinds that have come its way and slowed growth.
“Recent macroeconomic factors have pushed automotive retail into recession,” the company said. “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.”
“CEO emailed us 6 in the morning to tell us they were laying off 2,500 employees because the company wasn’t doing well and our department was over staffed apparently..I got called into a meeting after I clocked in with hundreds of other people in the same room and was notified we would be let go. Came back to my desk and they had a box for all my stuff already. No notice aside from the email :/
Edit: Yes this was Carvana. CEO himself sent out the email and surprised everyone. Not even upper management was aware this would happen. They laid off everyone I knew, even managers and team leads who had been there for years. No one saw this coming as we thought we were doing okay. They literally just had a 2.2billion dollar deal and bought a new building in Phoenix. We got 4 weeks severance at least. Worried but hopefully I’ll find something better. Just sucks cause no one was expecting it. Came to work thinking it would just be another day.
Edit 2: This was not in Canada. Carvana does not operate in Canada. I simply enjoy Canadian cookies..yum.
Edit 3: Probably my last edit. This post got popular and I can’t keep up. Thanks for the encouragement everyone. If anyone is hiring in the Phoenix area..I could use a job..lol
Edit 4: I am getting absolutely bombarded with messages and DMs with people reaching out to me offering jobs. Thank you so much! Sorry in advance if I take a while to respond, but thank you also for trying to get a girl employed again!!”
Carvana laid off 2,000 people yesterday. I am not surprised. They were buying cars site unseen without any inspections at overpriced amounts. I am sure that came back to bite them
— Bwco (@bwco) May 11, 2022
Wow carvana you suck! Spent money building a facility in phoenix and laid off 2500 people. t.co/qk78BBbJFc
— 🇺🇦 Andrew Callander 🤟🏽 (@acallander) May 11, 2022