TEMPE, Ariz. - Tempe-based used car retailer Carvana is expanding once again, months after the company, according to an e-mail we obtained, laid off 12% of its workforce, or 2,500 employees.Here's what you should know about the massive layoff, as well as the expansion.Carvana, which quickly became a billion-dollar company since it was founded a decade ago, is known nationwide for its multi-story car vending machines.
The company operates more than 30 used-car vending machines across the country.On Aug. 24, company officials announced it is expanding, as well as opening its second car vending machine in the Phoenix area.The new machine will reportedly be located in Glendale, and will be the 33rd such machine in the U.S.The layoffs were announced in May 2022.Company officials cited "recent macroeconomic factors" that pushed the automotive retail industry into a recession as a factor in the layoffs.
FOX 10's Nicole Garcia reports.In the e-mail, Garcia cited "recent macroeconomic factors" that pushed the automotive retail industry into a recession as a factor in the layoffs:"Recent macroeconomic factors have pushed automotive retail into recession.
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.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.