Briefcase

Carvana cuts 2,500 employees

DETROIT – Online automotive retailer Carvana Co. says it’s letting go of about 2,500 workers, roughly 12% of its workforce, as it tries to bring staffing and expenses in line with sales.

The Phoenix company said in a regulatory filing Tuesday that its executive team is giving up salaries for the rest of the year to help fund severance pay for the workers.

Carvana, which sells online and delivers used vehicles to buyers, says the laid-off workers will come from operational groups. The company says it will be “transitioning operations” away from its auto reconditioning center in Euclid, Ohio, near Cleveland, as well as from some logistics hubs.

The filing said the moves are difficult, but will “facilitate Carvana returning to efficient growth on its mission to change the way people buy and sell cars.”

The layoffs come just a few weeks after Carvana posted a $506 million loss in the first quarter, six times larger than the same period a year ago.

EA Sports, FIFA will part ways

ZURICH – The FIFA video game will be disappearing after the maker failed to strike a new licensing deal with world soccer’s governing body.

Instead, EA Sports FC will be introduced in 2023 after the company creates the final game in partnership with FIFA later this year.

EA has been producing a FIFA game for around three decades and its fond association with fans worldwide helped the Zurich-based organization’s brand when it was tarnished amid a wave of arrests of soccer officials in 2015.

For many, FIFA means a game rather than a sports politics institution. Now FIFA will have to search for new video gaming opportunities beyond EA.

From wire reports