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Carvana Lays Off Over 2500 Workers With Many Over Zoom Meeting

Carvana Lays Off Over 2500 Workers Over Zoom Meeting

Carvana Lays Off Over 2500 Workers Over Zoom Meeting

Carvana, an online used car dealer, on Tuesday laid off 2,500 employees, many of them over Zoom, the company confirmed.

“You just fired us in a zoom meeting and said ‘have a good day in the end,” one Twitter user posted. “I am so disgusted by how this was handled.”

Another user posted that an email preceding the Zoom call had caused “mass hysteria at 7:30 a.m.” because it didn’t indicate who would be affected by the layoff.

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The Zoom had been pre-recorded, according to social media rumors, but Carvana informed Protocol that was not the case. Carvana’s laid-off workers, who are largely in “operational jobs,” makeup around 12% of the company’s workforce.

An email to employees from CEO Ernie Garcia reportedly blamed slower-than-expected growth. Carvana, which has struggled to maintain its early-pandemic success, reported a net loss of $260 million in the first quarter and its stock price is down more than 84% since the start of the year.

Carvana Lays Off Over 2500 Workers Over Zoom Meeting

“Recent macroeconomic factors have pushed automotive retail into recession,” a Carvana spokesperson told Protocol. “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.”

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According to a Carvana spokeswoman, “less than half” of the layoffs were done over Zoom, and the company “had as many interactions as we could in person.” The representative refused to specify how many layoffs were done by Zoom and how many were done in person but did not deny that 2,500 people were laid off via Zoom at first.

According to an 8-K form filed with the Securities and Exchange Commission, Carvana executives are foregoing their wages for the rest of the year to assist in pay severance to the laid-off employees.

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Carvana Lays Off Over 2500 Workers Over Zoom Meeting

Also on Tuesday, Carvana announced it would spend $2.2 billion to buy the Adesa business of car auction sites from KAR Auction Services. The Wall Street Journal reported that while Garcia expects the purchase to help “catapult” Carvana back to growth, the company faced some challenges financing the deal.

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Other companies have attracted bad press after conducting mass layoffs on video platforms, including TripActions‘ Zoom layoff in 2020 and Better.com’s webinar layoff late last year. There may be more to come, given the way the job market is turning: Both Cameo and Mural have conducted layoffs recently, and Netflix, Meta, Uber and Robinhood have all slowed hiring.

This story was updated to reflect that not every laid-off Carvana employee was told via Zoom.

A Knowledge Freak, Adecademician, Seasoned Blogger and SEO Specialist,

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