Used-car retailer Carvana Co is cutting another 1,500 jobs, or 8% of its workforce, the company said on Friday, at a time when demand for used cars has waned on the back of sky-high prices and supply shortages.
The company, whose shares were down 5.4% in late morning trade, has missed expectations for adjusted earnings in the last five quarters, per Refinitiv data, as expenses soared and demand for used cars dipped. Its stock price is down 97% in the past year. The price was at its all-time high of over $360 a share in August 2021, and this morning shares were trading at around $7.70.
Carvana 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.