After the controversial mass dismissal of 900 employees of the company Better.com, made by the CEO of the company via Zoom call in December of last year, Carvana, a car company, was not intimidated and decided to dismiss 2,500 employees from the same manner.
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The case took place on May 10. Thus, several video calls were made, where in each one the company fired lots of employees, all on the same day. The drop in the number of employees reached 12% with this mass dismissal, and the company explained that not all of them were done online.
According to the company, the mass dismissal is due to the financial crisis caused by the Covid-19 pandemic, which, although not affected the company so much in its initial phase, the accumulated net loss as a result of it reaches US$ 260 millions.
“Recent macroeconomic factors have led automotive retailing to recession. While Carvana is still growing, our growth is slower than what we originally anticipated in 2022, and we have made the difficult decision to reduce the size of certain operations teams to better align with current business needs,” said a company representative in interview.
In addition, the representative stated that the company is cutting other expenses until the end of the year to pay severance pay for employees who have been terminated, including salaries for the team itself.
Carvana is an online used car dealership located in Arizona, United States, and has been in the market for 10 years.
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