Laid off from Carvana.

What Carvana layoffs have meant for employees

Both of Carvana's filings, the May 2022 8-K and the November 2022 8-K, used the same formula for severance, a base number of weeks for every affected team member and a week on top for each year of tenure. Under that formula, two people cut on the same day could be offered different amounts depending on their years at Carvana, and three years came to seven weeks of pay in May and nine in November. If you were cut in either round, you can work out what the formula offered you from the round you left in and your start date at Carvana. Neither filing says whether a partial year earns the extra week or what pay a week is measured in, which matters if your count comes out different.

The weeks of pay were only part of each package. Both offers also listed recruiting and résumé support, help aimed at the next job. If you had unvested stock awards, the offer included pay matching early vesting on some grants, which put a cash figure on them. If your health coverage after leaving was COBRA, there's more on how COBRA works. Both formulas were announced for those two reductions, so they describe what Carvana offered then, not a standing policy.

Carvana gave business reasons for both rounds. In May it said it was bringing staffing and expenses in line with sales volumes, and it told CBS MoneyWatch that macroeconomic factors had pushed automotive retail into recession and that it was still growing, just more slowly than it had prepared for in 2022. In November it said it was matching the company's size to the current environment, and CEO Ernie Garcia's memo, as Reuters relayed CNBC's report, pointed to higher financing costs and said Carvana "failed to accurately predict how this would all play out." If you're explaining a layoff from either round to a future employer, that language is Carvana's own, in its filings and in published reporting.

If you left in the May 2022 round, the four-week formula from that round's filing applied to you, and if you left in November, the six-week one did. Euclid's mayor called Carvana one of the city's top 15 employers, Cleveland 19 reported. If you were at the Euclid center, the state's rules are at Ohio unemployment benefits, and if you were at the Tempe headquarters, they're at Arizona unemployment benefits. A California closing notice for 56 jobs, effective December 10, 2021, in our WARN tracker, and a Philadelphia layoff effective April 8, 2022, in Pennsylvania's February 2022 notices, both came before the May round, so the people they covered left before either formula was announced. If you were cut in California, there's more on California unemployment benefits, and for Philadelphia, on Pennsylvania unemployment benefits.

Carvana closed its $2.2 billion purchase of ADESA's U.S. physical auction business, with 56 auction sites, on May 9, 2022, according to its 10-K for 2022. It bought 100% of the equity in that business, so the ADESA units themselves became Carvana's. ADESA California and ADESA Illinois appear among the subsidiary guarantors in Carvana's August 2026 credit agreement, so our WARN tracker counts their 2020 notices, filed while KAR still owned ADESA, among Carvana's. If you came to Carvana from ADESA, those 2020 notices describe cuts made under KAR, before the sale, at auctions in California and Illinois.