Carvana is going to cut 1,500 jobs, which is about 8 percent of its workforce.

The cuts, along with the closing of some locations and the elimination of some work shifts, are all meant to save costs. A source told Bloomberg that it's because of the "challenging economic environment".

The cuts will affect operations, technology, and corporate roles. Those who are let go will get separation/severance pay through at least the new year, plus three months of healthcare coverage and unvested equity awards via cash payments.

Based in Tempe, Arizona, Carvana is struggling with a cratering Stock price and cash outflow. That's because after seeing a surge of success in 2021 as the lack of new-car supply drove used-car prices up, the market has shifted. Used-car prices are falling while inflation is rising and that has negatively impacted consumer demand for pre-owned vehicles.

As of Thursday, Carvana stock had plummeted 96 percent during the year. The stock is just under $7 as I type this.

[Image: Carvana]

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