'Right-Sizing' Carvana Won't Say If It Plans To Build Skokie Tower

SKOKIE, IL — Representatives of the online used car dealer that Skokie village trustees granted permission to build an illuminated glass tower on Woods Drive declined to say whether it still plans to erect a "car vending machine" between the Edens Expressway and Harms Woods.

After Arizona-based Carvana posted a loss of more than a half-billion dollars last quarter, the publicly traded company laid off about 2,500 employees — about 12 percent of its workforce. Many were notified by a scripted message delivered over Zoom.

"I know this information feels overwhelming, you're probably feeling frustrated or sad or angry or unsure about what comes next," employees were told.

Employees were told they would receive four weeks of paid severance, plus an additional week for every year they have worked for the company. And executives pledged to give up their salaries for the rest of the year to contribute to the severance packages, according to a filing Tuesday with the U.S. Securities and Exchange Commission.

"In connection with these right-sizing initiatives, over the next several weeks Carvana will be transitioning operations away from its Euclid, [Ohio reconditioning center] and a few logistics hubs," company officials said in the SEC filing.

"We believe these decisions, while extremely difficult, will result in Carvana restoring a better balance between its sales volumes and staffing levels and facilitate Carvana returning to efficient growth on its mission to change the way people buy and sell cars," they said.

On the same day as it laid off about one out of every six of its employees, Carvana founder and CEO Ernie Garcia announced that the company had acquired car auction company Adesa, including its 56 U.S. locations, for $2.2 billion.

Carvana's stock has fallen by more than 83 percent since the start of 2022.

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In February, the Skokie Village Board modified the zoning code to allow a car dealership on Woods Drive. And a few weeks ago, Carvana company officials closed on the purchase of the property from local real estate developer Mitch Golz's GW Properties.

But no timeline for construction has been revealed, and company officials have not said whether its "right-sizing" strategy would have an effect on plans for the Skokie tower.

Patch asked Carvana representatives whether the plans for the Skokie property had changed in any way in recent weeks — and whether the company was still planning on building the structure in the village.

In response, Carvana Senior Public Relations Specialist Veronica Cardenas declined to answer any of the questions, saying the company did not "have any information to share at the moment."

Earlier: Critics Cry Fowl As Skokie Trustees Welcome Carvana Tower