Carvana lays off 1,500 employees following stock free fall - Check out in detail

Carvana is laying off about 1,500 people, or 8% of its workforce, following a free fall in the company’s stock this year

The email from Carvana CEO Ernie Garcia cites economic headwinds including higher financing costs and delayed car purchasing.

He says the company “failed to accurately predict how this would all play out and the impact it would have on our business.”

The layoffs add to a growing number of tech-focused job cuts amid rising interest rates, persistent inflation and fears of an economic downturn.

it also follows rapid growth but some missteps during the coronavirus pandemic to better capitalize on an unprecedently strong used vehicle market.

Carvana stock closed Friday at $8.06 per share, down by 3.1%.

Carvana’s stock has plummeted by about 97% this year after reaching an all-time intraday high of $376.83 per share on Aug. 10, 2021.

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