Carvana slams the door on about 300 workers at their Euclid refurbishing facility

Published: May. 11, 2022 at 8:51 PM EDT
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EUCLID, Ohio (WOIO) - In a filing to the Securities and Exchange Commission, used car retailer Carvana will eliminate 2,500 employees due to what they said was the need to align staffing and expenses with sales volumes.

Caught up in that job elimination will be about 300 employees in Euclid at a Carvana refurbishing facility, who were told this week that they would be losing their jobs in July.

The refurbishing center in Euclid employs mechanics, painters, detailers, photographers, and logistics personnel.

Employees said everyone in the facility is losing their job, about 300 employees, according to multiple people who are losing their job.

“We all got called into the cafeteria and they said, ’We got bad news, we’re getting closed down,’” said an employee who did not want to be identified.

Employees said a similar facility in Elyria Township was remaining open, but calls to Elyria Township officials to confirm that information were not returned.

Euclid employees were not given the option of working in Elyria.

“If we do want to work for Carvana again, we have to re-apply online to Elyria,” said the employee, “If we do that it is a 50/50 chance we get the job.”

Carvana released a statement to 19 News:

“Recent macroeconomic factors have pushed automotive retail into recession. 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.

Saying goodbye to any team member is not a decision we take lightly and we aim to be transparent, thoughtful and supportive throughout this process, including providing meaningful assistance, resources and support to impacted team members. We believe these decisions, while extremely difficult, will result in Carvana restoring a better balance to our operations and facilitate the company returning to efficient growth on its mission to change the way people buy and sell cars.”

Carvana will pay each employee four weeks of severance pay and additional pay based on years of service.

Another employee we spoke with was disappointed, largely because she enjoyed the job, pay, and benefits.

“I just came last year and I left another great position to come here thinking it was promising for me,” she said.

Euclid Mayor Kirsten Holzheimer Gail said the city was not contacted directly by Carvana.

“Carvana is one of Euclid’s top 15 employers, so we are extremely disappointed to learn about the layoffs,” she said.

The city, the mayor said, will offer to connect impacted residents to resources to help them gain new employment.

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