Used-car seller Carvana, facing weak car sales and losses, laid off 1,500 more staff. The company has cut almost 20% of its employees in 2022.
Carvana Co., the once-high-flying online seller of used vehicles known for its car"vending machines," announced the layoffs of 1,500 people late last week, its second major workforce reduction this year.
"We believe these decisions, while extremely difficult, will help Carvana achieve its financial goals," the company's statement added. Ironically, Carvana over the first nine months of 2022 sold more vehicles than over the same stretch last year — about 325,300 used cars and trucks compared with 312,200. But sales did turn lower in the most recent quarter.
Seth Basham, an analyst covering the stock for brokerage Wedbush, said the company still hasn't shown signs of stabilization, and he feels the liquidity situation could get worse.
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