After losing nearly $1 billion in the first half of 2022, Carvana Co. will do more to cut expenses in the coming months, including possibly further reducing employee counts at the online used-vehicle retailer.
That direction from company leaders comes after Carvana already worked on cost-cutting in its second quarter, notably announcing in May that it would eliminate 2,500 jobs. Cost reductions are a move financial analysts have been urging for the challenged retailer, especially after its cash burn-heavy first quarter.
Carvana CEO Ernie Garcia said the retailer in the most recent quarter "shifted our priorities for the first time in company history to favor efficiency and cash flow in recognition of the changes to the market and the economic landscape, as well as to enable us to quickly adjust to changes in our industry that had caused our expenses to be out of balance with sales volumes."
Carvana's back-to-back quarterly net losses in the first half o…