(Bloomberg) -- Carvana Co (NYSE:CVNA). said it will eliminate about 1,500 jobs as the online vehicle dealer grapples with a slowdown in the used-car market.
The cuts amount to about 8% of the company’s workforce, a spokesperson confirmed Friday. CNBC earlier reported the layoff plans.
The move marks the latest setback for Carvana, which is struggling with cash outflows and a tumbling stock price. The company, which operates an online platform selling second-hand cars, benefited last year when supply challenges in new-car production caused a surge in demand for used vehicles. But a recent turn in the market, marked by falling used-vehicle prices and climbing interest rates, has hurt consumer demand.
Read more: Carvana Shares Plunge to Record Low as Used-Car Values Fade
The shares fell 7.3% as of 11:59 a.m. in New York. Carvana plunged 96% this year through Thursday’s close.
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