On Friday, Carvana Co announced another round of job cuts, impacting about 8 per cent of its workforce. The company attempts to cut costs amid weakening demand for used cars due to increasing interest rates.

The company said that the job cuts were initiated to match the company’s size with the current environment and attain financial goals. The company added that the reduction in workforce mainly impacts employees in the corporate, technology and operation departments.

It is to be noted that the demand for used cars has been hurt by hybrid-working models and higher costs caused by climbing interest rates as consumers rethink personal mobility options to try and trim their daily expenses.

The weak demand has forced the company to sell many used cars at lower prices after acquiring them at a higher cost due to robust demand for personal transportation.