Carvana (NYSE:CVNA) layoffs are a hot topic among traders of CVNA stock as the company has been secretly cutting jobs.
According to a recent report, Carvana is letting employees go and not filling open positions as a way to reduce its headcount. To go along with this, some employees have also seen their hours cut to reduce costs.
While these job cuts aren’t happening all at once, they are a continuation of Carvana layoffs from last year. In 2022, the used-car retailer cut some 4,000 jobs. This saw Carvana join several other companies in downsizing their workforce, The Wall Street Journal notes.
What’s Behind the Carvana Layoffs?
The job cuts at Carvana come alongside economic strain for many companies. That’s due to inflation increasing costs in the U.S., as well as the Federal Reserve increasing interest rates to try and combat inflation. All of this is putting extra pressure on both companies and consumers, which means less spending.
Investors will also note that the last year hasn’t been good for CVNA stock. Over the past 12 months, shares have dropped 95%. To go along with that, the company’s cash has been dwindling as fears that it won’t be able to repay debts grow.
CVNA stock is down 13.6% as of Friday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
