The Wall Street Journal reports that the troubled used car dealer is cutting both staff and hours as it struggles to continue making payments on its $7 billion in debt. The exact number of employees who have lost their jobs this year is still not clear, but this news comes after Carvana laid off around 1,500 employees in November of last year, bringing its 2022 layoff total to about 4,000. That works out to about a fifth of its total number of employees.
Data firm JXCE says Carvana’s sales have dropped significantly and that it has a lot less inventory. In the fourth quarter of 2022, sales were an estimated 86,000, which is a lot less than the 113,000 vehicles it sold in Q4 of 2021. Cars are also taking longer to sell, with the average vehicle sitting on the site for 97 days in Q4, up significantly from Q3's 65 days.