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(WJW) – Carvana is laying off 8% of its workforce, which is about 1,500 people.

On Friday, a message from the CEO went out to employees telling them about the layoffs.

The email from Carvana CEO Ernie Garcia, titled “Today is a hard day,” cites economic headwinds including higher financing costs and delayed car purchasing. He says the company “failed to accurately predict how this would all play out and the impact it would have on our business.”

“In the next 30 minutes we will be sending emails to everyone in Corporate and Tech letting you know whether or not you are impacted by today’s changes,” the letter stated.

Each impacted team member will receive a severance package, according to the letter, and extended healthcare coverage.

According to CNBC, Carvana grew exponentially during the pandemic, as shoppers shifted to online purchasing rather than visiting a dealership.

However, they didn’t have enough vehicles to meet demand, which led them to buy a record number of vehicles at staggering prices just before demand slowed.

“To those impacted, I am sorry,” Garcia said. “As you all know, we made a similar decision to this one in May. It is fair to ask why this is happening again, and yet I am not sure I can answer it as clearly as you deserve.”

It’s not clear how many jobs are impacted in Northeast Ohio.