KAR OPENLANE Inc

By Chris Wack

Carvana Co. shares were down 4% to $37.26 after Barron's reported the company will lay off 12% of its staff, and after saying it is buying ADESA's U.S. physical auction business from KAR Auction Services Inc. for $2.2 billion.

The stock hit its 52-week low of $35.08 earlier in the session. Carvana stock closed Monday's session down 17%.

According to an email from Chief Executive Ernie Garcia reviewed by Barron's, the company is laying off about 2,500 employees, primarily in "operational positions."

Carvana said the auction business it is buying from KAR Auction consists of 56 ADESA U.S. locations totaling about 6.5 million square feet of buildings on more than 4,000 acres.

KAR Auction shares were down 5% to $12.28.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

May 10, 2022 13:59 ET (17:59 GMT)

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