Bulletins

Carvana just laid off 2,500 workers, many over Zoom

Have we learned nothing?

Empty cubicles

The online used car dealer Carvana laid off thousands of workers over Zoom on Tuesday.

Photo: Bill Varie/Getty Images

Carvana, an online used car dealer, on Tuesday laid off 2,500 employees, many of them over Zoom, the company confirmed.


"You just fired us in a zoom meeting and said 'have a good day' at the end," one Twitter user posted. "I am so disgusted by how this was handled."

Another user posted that an email preceding the Zoom call had caused "mass hysteria at 7:30 a.m." because it didn't indicate who would be affected by the layoff.

Rumors on social media swirled that the Zoom had been pre-recorded, but Carvana told Protocol that was not the case. The laid-off employees, who are mostly in "operational positions," comprise about 12% of Carvana's workforce. An email to employees from CEO Ernie Garcia reportedly blamed slower-than-expected growth. Carvana, which has struggled to maintain its early-pandemic success, reported a net loss of $260 million in the first quarter and its stock price is down more than 84% since the start of the year.

"Recent macroeconomic factors have pushed automotive retail into recession," a Carvana spokesperson told Protocol. "While Carvana is still growing, our growth is slower than what we originally prepared for in 2022, and we made the difficult decision to reduce the size of certain operations teams to better align with the current needs of the business."

A Carvana spokesperson told Protocol that "less than half" of the layoffs were conducted over Zoom and that the company "had as many conversations as we could in person." The spokesperson declined to say how many of the layoffs were conducted over Zoom and how many in person, and initially did not dispute that 2,500 employees were laid off via Zoom.

Carvana's executives are giving up their salaries for the rest of the year to help pay the laid-off employees' severance, according to an 8-K form the company filed with the Securities and Exchange Commission.

Also on Tuesday, Carvana announced it would spend $2.2 billion to buy the Adesa business of car auction sites from KAR Auction Services. The Wall Street Journal reported that while Garcia expects the purchase to help "catapult" Carvana back to growth, the company faced some challenges financing the deal.

Other companies have attracted bad press after conducting mass layoffs on video platforms, including TripActions' Zoom layoff in 2020 and Better.com's webinar layoff late last year. There may be more to come, given the way the job market is turning: Both Cameo and Mural have conducted layoffs recently, and Netflix, Meta, Uber and Robinhood have all slowed hiring.

This story was updated to reflect that not every laid-off Carvana employee was told via Zoom.

Latest Bulletins

Tesla is pushing for changes to Texas’ energy market rules that would allow anyone with solar panels or battery storage to essentially sell excess power back to the grid. The company wants residential owners to be able to participate in the market, including, of course, owners of Tesla's residential products, like its Powerwall.

Tesla is framing its ask as a bid to insulate the Texas grid from the kinds of demand spikes that have caused major blackouts in the past: a gesture of good corporate citizenship, if you will. It doesn’t hurt that it would come with the added benefit of making Tesla’s products even more attractive.

Keep Reading Show less

LAS VEGAS - The software industry is in the midst of a tumultuous time. But at ServiceNow, CEO Bill McDermott is nothing but optimistic about the vendor’s outlook.

Keep Reading Show less

ClickUp laid off 7% of its staff on Monday morning, in a move that was called “unexpected” by several laid-off employees on LinkedIn. CEO Zeb Evans told Protocol the goal was to ensure ClickUp’s profitability and efficiency in the future.

"Yesterday, we made restructuring changes to optimize our business for utmost efficiency," Evans said. "In doing so, this puts us in a position to accelerate our timeline to profitability and ultimately achieve our goal of going public. We are by no means slowing down or pausing hiring, as we plan to hire 250 people this year and 300 more next year."

Keep Reading Show less

Ousted WeWork founder Adam Neumann is moving into crypto.

Flowcarbon, which counts Neumann and his wife Rebekah as co-founders, said Tuesday it has raised $70 million combined in venture funding, led by Andreessen Horowitz's crypto fund, and a token sale. The startup hopes to sell tokenized carbon credits on the blockchain.

Keep Reading Show less

A recent report from Andreessen Horowitz illustrates a sad state of affairs for the fintech industry, which has gotten clobbered in the tech-stocks downdraft. A chart included in the report shows fintech valuations in sharper decline than any other sector, by a significant margin.

Keep Reading Show less

Netflix is setting its sights on gaming beyond mobile, if a survey sent to subscribers this week is any indication. In the survey, the company asked respondents at length about their own gaming habits as well as their familiarity with a variety of game subscription services, including Xbox Game Pass, PlayStation Plus and Apple Arcade.

Keep Reading Show less

A California judge ruled that the sexual harassment case against Tesla can continue in court, despite the fact that the worker who brought the case had previously signed an arbitration agreement giving up her right to sue.

Keep Reading Show less

Startups that soared throughout the pandemic are now feeling the crunch, and on-demand grocery company Gorillas is the latest victim. The company announced Tuesday that it's laying off half its corporate staff, or about 300 employees around the world.

Keep Reading Show less

Netflix is releasing three new games Tuesday and plans to release Exploding Kittens, its most high-profile original game, on May 31, the company announced on Tuesday. Netflix says its catalog now includes 22 games in total.

Keep Reading Show less

Barely more than two weeks after it agreed to stop selling its existing collection of face prints to private entities, facial recognition firm Clearview AI has a brand new plan to sell its software to private companies instead.

Keep Reading Show less

LGBTQ+ workers are generally less satisfied with their employers than their straight, cisgender colleagues are, according to a new report from Glassdoor. But some companies are more popular with their LGBTQ+ employees than others.

Keep Reading Show less

Last year saw a notable jump in ransomware attacks that included exfiltration of data as a component, highlighting an ongoing shift in the way the attacks are monetized, according to Verizon's major annual breach report.

Keep Reading Show less

Snap is the latest tech giant to join The Great Hunkering Down. Like other social media companies that flourished during lockdown, the company is struggling to meet earnings estimates and will slow hiring.

Keep Reading Show less

Spotify stopped hosting political ads on its services in early 2020, citing a lack of “robustness” in its systems, ahead of what turned out to be the ugliest U.S. election in recent history.

Two years later, as the midterm primaries get going, the company is courting political advertisers once again, according to a company presentation and marketing email viewed by Protocol.

Keep Reading Show less

Quality assurance testers at Call of Duty studio Raven Software have voted overwhelmingly to form a union with the Communications Workers of America, marking a historic labor victory for the video game industry. The vote, with the Milwaukee office of the National Labor Relations Board, was 19-3.

Keep Reading Show less

Federal labor prosecutors in California plan to file a complaint against Activision Blizzard for illegally threatening workers if the company doesn't agree to a settlement, according to National Labor Relations Board spokesperson Kayla Blado.

Keep Reading Show less

Swedish "buy now, pay later" company Klarna is laying off 10% of its workforce, CEO Sebastian Siemiatkowski told staff via a pre-recorded video call Monday. Interest in pay-later products has sagged somewhat as consumers have felt more financially strapped and advocates in the U.S. began investigating the deferred payment plans last year. Klarna has reportedly been looking for more funding, potentially at a lower valuation.

Keep Reading Show less

The New York State Common Retirement Fund, one of the nation’s largest pension funds, announced that it will vote to remove all of Twitter’s directors at this week’s annual shareholder meeting. The vote against the directors is unlikely to result in change, but it shows mounting institutional pressure for Twitter to resist Elon Musk’s vision for relaxed content moderation policies.

Keep Reading Show less

Apple is looking to boost global production outside of China as the country’s "zero-COVID" strategy cripples production facilities, the Wall Street Journal reported.

The strict lockdown, which has been described by the WHO as "not sustainable," has shut down large cities, including Shanghai, as the highly infectious omicron variant spreads.

Keep Reading Show less

As the Supreme Court weighs whether to block Texas' social media "censorship" law, a court of appeals has decided to uphold the injunction on a similar Florida law, finding that social media companies "are 'private actors' whose rights the First Amendment protects."

Keep Reading Show less

GameStop is all about Web3: The company announced on Monday that it will launch a digital wallet for crypto and NFTs.

The GameStop wallet can be used across apps without users needing to leave their browsers, the company said in a statement. The self-custodial Ethereum wallet gives users access to the keys to their digital assets rather than trusting them with a third party, and is available for download as an extension on Google Chrome's web store as well as on web browser Brave. The wallet will also be available as an iPhone app down the line, according to the GameStop wallet website. The wallet uses Loopring for transactions, a Layer 2 solution that's meant to lower transaction fees.

Keep Reading Show less

D.C. Attorney General Karl Racine is suing Mark Zuckerberg, alleging the Meta CEO was responsible for decisions that opened the door for the Cambridge Analytica scandal.

Keep Reading Show less

The U.K.'s Information Commissioner’s Office, the country's privacy watchdog, has ordered facial recognition company Clearview AI to delete all data belonging to the country's residents.

Keep Reading Show less

Meta will finally give researchers access to targeting data for political ads — information that academics have been clamoring for and using legally risky workarounds to collect on their own for years.

Keep Reading Show less

Coinbase just celebrated its 10th birthday. And the crypto powerhouse marked the milestone on a defiant note, with a snarky TV ad clapping back at crypto bashers.

Keep Reading Show less
Bulletins