2500 Carvana employees fired via pre-recorded Zoom call and the fallout was equally awful for some of Carvana’s customers.
- Website: Carvana.com
- Business: Online used car retailer
- Carvana Owner – Ernie Garcia (Founder)
- Are there any lawsuits against Carvana? Yes, Carvana is currently “facing a class action lawsuit that alleges unfair and deceptive practices.”
- What’s the issue? Lack of proper documentation for cars being sold.
2500 Carvana Employees Fired
Carvana, the online used car retailer, fired about 2500 of their employees via a pre-recorded zoom call. That’s about 12% of its workforce.
While a company wide email was sent to employees informing them of staff cuts, they had no idea who was about to be fired.
However, Carvana soon rectified that via a pre-recorded Zoom call.
Imagine being fired on a Zoom call then being told to “Have a good day.” How do you respond to that?
Understandably people get fired everyday for various reasons. But exercising a bit of tact when doing something like that is not that difficult to do.
Carvana’s Net Loss
Despite Carvana’s success, it seems that the company struggled during the early part of the pandemic.
According to TechTimes, Carvana reported a net loss of $260 million during its first-quarter earnings. That’s understandable, since people may not have been buying cars, while in lockdown.
Added to that, some people may not have had the financial means to purchase a car during the pandemic. But is it simply just about automotive retail being pushed into recession due to macroeconomic factors?
Selling cars online is a novel idea and it is clear that Carvana has been making money. So, could there have been other issues that may have led to the firing of these 2500 Carvana employees?
2500 Carvana Employees Fired – The Fallout
Even though Carvana provides an easy way to buy a car, the Consumer Affairs verified reviews suggest that not everyone had a good experience when it came to buying a car online from Carvana. Oops.
Apart from economic factors, what other factors were at play, that resulted in the demise of these 2500 employees?
The Carvana Complaints
According to The US Sun, Carvana is being sued by customers who were arrested over company errors that resulted from their action of firing these 2500 employees. Yikes!
According to the lawsuit, Carvana “failed to deliver permanent vehicle registration tags – causing some customers to be arrested.” Sounds like a Hertz rental strategy doesn’t it?
However, this vehicle registration issue has actually been one of the longstanding customer complaints about Carvana. This is not new but most likely the situation has been exacerbated with the firing of these employees.
According to I-Team, Carvana’s license to sell cars in Illinois has been suspended over complaints. Again these complaints stem from “delays in processing vehicle titles and registration.
“The the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) also threatened to pull the company’s dealer license for the very same reason. FLHSMV now has Carvana on a regular review schedule and has ordered the company to desist from selling any vehicles until they have “the vehicle’s title in its possession.”
According to ABC6 Action News, the lawsuit against Carvana “alleges unfair, deceptive practices.” People have cars they cannot drive and multiple states are investigating Carvana’s business practices.
Is Carvana Legitimate?
Carvana is totally legitimate business. However, the way in which they have gone about their business is questionable.
All we can say at the moment is use them at your own risk.