The Arizona-based car retailer Carvana reports it will layoff about 12% of its work force. The announcement comes about a year after the company held several hiring events in the Phoenix area. Carvana says about 2,500 jobs will be cut to “better align staffing and expense levels with sales volumes.”
The popular online car-buying service recently posted a $506 million loss in the first quarter after recently acquiring the used vehicle auction business Adesa U.S. for more than $2 billion.
Carvana executives say affected employees will receive four weeks of pay for each year they’ve been with the company, as well as the opportunity for extended health insurance benefits.
Executives with the company will forgo their base salaries for the remainder of the year.
Carvana is an online-only used car retailer that features car vending machines at locations across the country.