TEMPE, Ariz.–Used car retailer Carvana, with which some credit unions have partnered on lending as other CUs have expressed interest, reported it is laying off 1,500 employees, or about 8% of its workforce.
The company cited waning demand for used cars as a result of high prices and rising interest rates, as well as supply shortages for reducing its employee count
Citing an internal memo, CNBC reported the company faced economic headwinds from higher financing costs and it “failed to accurately predict how this would all play out and the impact it would have on our business.”
Carvana, whose shares were down about 7% last week, has missed expectations for adjusted earnings in the last five quarters, per Refinitiv data, as expenses soared and demand for used cars dipped, CNBC reported.
“The company, best known for its automated car vending machines, earlier this year laid off around 2,500 employees, or 12% of its workforce, in a bid to cut costs among its other measures,” according to the news outlet.