Carvana announces job cuts, shares waver

Vroom

10/05/2022 18:46

** Carvana's  CVNA.N  shares drop into and out of negative
territory on Tues after co said it's reducing its workforce
    ** CVNA last up 1.0% at $39.14
    ** Co to lay off about 2,500 employees under restructuring
plan  urn:newsml:reuters.com:*:nL3N2X23MV
    ** Move "will result in Carvana restoring a better balance
between its sales volumes and staffing levels", co said in
regulatory filing
    ** Co said exec team to forego salaries for rest of year to
help contribute to severance pay
    ** Shares rose early in the session after co completed $2.2
bln acquisition of KAR Global's  KAR.N  U.S. physical auction
house ADESA  urn:newsml:reuters.com:*:nL3N2X22JM
    **  With move on Tues, stock has lost nearly 70% this
quarter. Co last month reported sequential decline in retail
units sold in Q1, impacted by high used-vehicle prices, and
raised $1.25 bln of equity for general corp purposes in offering
at $80/sh
    ** In comparison, shares of smaller peer Vroom Inc  VRM.O 
rallying 25.0% after co named new CEO and posted
smaller-than-expected loss  urn:newsml:reuters.com:*:nL3N2X224L

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))