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Carvana, in an attempt to strengthen its balance sheet and attain positive cash flow, has been trimming inventory and slashing advertising expenses.
The company, which allows customers to buy cars online, became popular during the COVID-19 pandemic, as people opted for readily available used cars instead of buying newer vehicles, which were in short supply due to a global chip crunch.
However, it has since been struggling to sell cars acquired at elevated prices as buyers, hit by inflation and worried about a recession, cut spending.
Last month, the debt-laden company struck a deal with most of its term bondholders to cut its outstanding debt by more than $1 billion.
