Carvana cuts 2,500 jobs, execs to forego pay for severance

DETROIT (AP) — Online automotive retailer Carvana Co. says it’s letting go about 2,500 workers — roughly 12% of its workforce — as it tries to bring staffing and expenses in line with sales. The Phoenix company says in a regulatory filing that its executive team is giving up salaries for the rest of the year to help fund severance pay for the workers. Carvana says the laid-off workers will come from operational groups. The company says it will be “transitioning operations” away from its auto reconditioning center in Euclid, Ohio, near Cleveland, as well as some logistics hubs. The layoffs come just a few weeks after Carvana posted a $506 million loss in the first quarter, six times larger than the same period a year ago.