”Since January, Carvana shares have fallen 83.4% to $38.40 at the time of writing. Basically, $14 billion of market cap has been wiped out in less than five months.
Carvana, which went public in 2017 and had been described as “the Amazon of car dealers”, has been taking aggressive measures to turn things around, including laying off 2,500 employees, or about 12% of its workforce.
The company's executive team will also forgo their salary for the remainder of the year to contribute to the severance pay for departing employees.
Carvana is very much a family affair, as Garcia's father, billionaire Ernest Garcia II is a major shareholder of the battered company.
The elder Garcia pled guilty in 1990 to a felony bank fraud charge related to the collapse of Charles Keating's Lincoln Savings and Loan Association, and spent three years on probation.
Father and son have lost an estimated 80% of their wealth in nine months. The elder Garcia has a total net worth of $5.23 billion, according to the Bloomberg Billionaire Index, down $9.63 billion since the beginning of the year.”
Sucks for the laid off employees but at least the higher ups are (reportedly) forgoing pay instead of profiting while everyone else gets drained.
https://www.thestreet.com/.amp/investing/carvana-the-amazon-of-car-dealers-is-in-deep-trouble