A Tempe-based retail giant has laid off over 2,500 employees as of Tuesday, nearly 12% of its workforce.

Carvana confirmed it has laid off thousands of staffers, citing “macroeconomic factors.”

“Recent macroeconomic factors have pushed automotive retail into recession,” a company spokesperson said in a statement. “While Carvana is still growing, our growth is slower than what we originally prepared for in 2022, and we made the difficult decision to reduce the size of certain operations teams to better align with the current needs of the business.”

The spokesperson also said that it was not a decision that was made without thought. 

“Saying goodbye to any team member is not a decision we take lightly and we aim to be transparent, thoughtful and supportive throughout this process, including providing meaningful assistance, resources and support to impacted team members,” the statement continued. “We believe these decisions, while extremely difficult, will result in Carvana restoring a better balance to our operations and facilitate the company returning to efficient growth on its mission to change the way people buy and sell cars.”

Carvana added in a regulatory filing Tuesday that its executive team is forgoing their salaries for the rest of the year to help fund severance pay for the workers who are now out of a job. 

The Associated Press contributed to this reporting.