Former employees of Carvana have started coming out about how they were fired over Zoom. Carvana, an online used car retailer, let go of about 12% of its workforce or around 2,500 people over the video communications app.
Carvana Sent a Company-Wide Email over Job Cuts
As initially reported by Protocol, Carvana used Zoom to let go of a significant chunk of its total workers. The story by Engadget stated that Twitter reports are showing "mass hysteria" among the employees who received a company-wide email from the management.
The company-wide email that the employees received informed them about upcoming job cuts. The email, which was sent at 7:30 AM, did not specify who the company would let go.
2,500 Workers Lost Their Jobs Via Zoom
About 2,500 Carvana workers were told that they no longer had jobs at the company. Some of these workers were in "operational positions" with there being talks of the Zoom call being pre-recorded, according to certain claims on Twitter.
Updating this: I was contacted by multiple impacted employees who shared the video with me. They independently said it was pre-recorded. I reached out to @carvana who eventually got back to me and said it was not.
— The AZ - abc15 - Data Guru (@Garrett_Archer) May 10, 2022
As per Izzy on Twitter, Canrvana fired them over a Zoom meeting and still told them to "have a good day" upon ending the call. The company has been recently struggling despite having a lot of success during the early part of the pandemic.
Fuck @Carvana. You just fired us in a zoom meeting and said “have a good day” at the end. You should be ashamed. Many people have children, rent to pay, and responsibilities. I am so disgusted by how this was handled
— Izzy (@OrangeCreamy11) May 10, 2022
Company Reported a Net Loss of $260 Million During Its Q1 Earnings Call
Carvana reported a net loss of $260 million during its first-quarter earnings call and said that the layoffs on the financial headwinds have been the cause for the company's struggle. As per a company spokesperson in a statement given to Protocol, automotive retail has been pushed into recession due to certain macroeconomic factors that have recently happened.
The company said that the growth they have experienced is not what they initially expected and that because of the slower growth, they have decided to let go of certain employees. Carvana said that they had to downsize their employees in order for them to better align with their business' current needs.
Read Also: Elon Musk's Twitter Plan Reportedly Includes Cutting Jobs to Make More Money
$2.2 Billion Investment Budget Announced on the Same Day It Let Go of 12% of Its Workforce
While the company cut off 12% of its workforce, it also announced a $2.2 billion budget on the same day. Carvana plans to use that budget in order to purchase auction sites from Kar Auction Services, according to the Wall Street Journal.
Carvana's decision to let go of its workers over Zoom, however, is not the first time a company's employees were laid off via Zoom. One other instance where this happened involved Better.com, the company let go of 10% of its workforce in a webinar last year.
Better.com also received negative feedback due to its decision to mass lay off its employees over a Zoom call instead of handling it in a different manner.
As of press time, the tweets regarding the incident reportedly coming from previous Carvana employees are still rolling in.
Related Article: Amazon Has Fired Several Senior Managers at its Staten Island Facility
This article is owned by Tech Times
Written by Urian B.
