Carvana lays off 2,500 workers after $506 million loss in 1st quarter

  • Home
  • Economy
  • Carvana lays off 2,500 workers after $506 million loss in 1st quarter


Carvana, which laid off 2,500 workers Tuesday, has never logged an annual profit over its 10 years of existence, preferring instead to plow cash flow into expansion.

Carvana, the fast-growing used-car seller based in Tempe, announced Tuesday its plans to lay off 2,500 employees – more than 10% of its workforce –  as losses mount.

The company, which operates a network of high-profile vehicle “vending machines” including one at Loop 202 and Scottsdale Road, said the move was designed to “better align staffing and expense levels with sales volumes.”

Carvana reported a $506 million loss in its first quarter ending March 31, well above red ink of $82 million during the same stretch of 2021, despite a 56% jump in revenue to $3.5 billion and a 14% increase in vehicles sold.

The company has never logged an annual profit over its 10 years of existence, preferring instead to plow cash flow into expansion.

SUBSCRIBE TO OUR NEWSLETTER:   The Daily Money delivers our top personal finance stories to your inbox



Source link

Leave A Comment

Chinese (Simplified)EnglishFrenchItalianPortugueseRussianSpanish