TransportationUS

Carvana Layoffs

May 2022

Carvana announced a layoff affecting 2,500 employees (12% of its workforce) in May 2022. The company operates in the Transportation sector.

Share:
People Affected

2,500

Percentage

12%

Announced Date

May 10, 2022

Company Information

Industry
Transportation
Country
US
Region
Phoenix
Last Updated: Apr 18, 2026

About

On May 10, 2022, the U.S. used-car retailer Carvana announced it would lay off 2,500 employees, a significant workforce reduction as the company grapples with severe overcapacity and mounting financial losses. The layoffs, part of a plan to realign staffing and expenses with declining sales volumes, come after Carvana reported a net loss of $506 million in the first quarter of 2022, despite a 56% revenue increase. The company had expanded its operations anticipating higher demand, but faced with a sharp downturn, it is now cutting roughly 12% of its workforce. Carvana's executive team is forgoing salaries for the remainder of the year to help fund severance packages, which include four weeks of pay plus additional compensation based on tenure.

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