Carvana lays off 1,500 employees

• Carvana is laying off about 1,500 people, or 8% of its workforce, following a free fall in the company’s stock this year and concerns around its long-term trajectory.

• 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.”

Carvana is laying off about 1,500 people, or 8% of its workforce, Friday following a free fall in the company’s stock this year, a weakening used vehicle market and concerns around the company’s long-term trajectory, according to an internal message first obtained by CNBC’s Scott Wapner.

The email from Carvana CEO Ernie Garcia, titled “Today is a hard day,” 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.”

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.

Charts 2 years later:

 

 

 

 

Meta Plans To Cut Thousands

Following the lead of rival social media outlet Twitter, Facebook-owner Meta reportedly plans large-scale layoffs that could hit thousands of employees this week.  

According to a report by the Wall Street Journal, the announcements that "many thousands of people" will be cut could come as soon as Wednesday. Meta says it employs 87,000.

The WSJ report said Meta has told employees to cancel nonessential travel beginning this week. It would be the first large reduction of employees in the company's 18-year history.

Rivals Initiate Layoffs

The round of layoffs by Meta follows that of rival Twitter. The new owner of privately held Twitter, Tesla Chief Executive Elon Musk, is cutting half the staff, or 3,700 people. But reports over the weekend said Twitter asked some laid off workers to come back.

Further, Amazon last week said it would pause corporate hiring. Among other companies, ride-hailing company Lyft said it would cut 700 jobs, about 13% of its workforce.

Also, Stripe last week said it expects to cut 14% of staff. Reports cited a note Chief Executive Patrick Collison sent to his staff. In it, he cited "stubborn inflation, energy shocks, higher interest rates, reduced investment budgets and sparser startup funding."