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Carvana announces huge layoffs after buying $2.2 billion auction company

The announcement was made by Carvana's Chief Executive Officer Ernie Garcia in an email to workers on Tuesday.

TEMPE, Ariz — Editor's note: The above video aired during a previous broadcast.

Tempe-based car company Carvana is laying off 2,500 employees, according to an email sent to employees on Tuesday.

The announcement to lay off 12% of the company's employees was made the same morning the company announced it spent $2.2 billion to buy auction business ADESA U.S.

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VERSIÓN EN ESPAÑOL: La compañía Carvana con sede en Tempe, despidió a 2,500 empleados según informes

"I wish the burden were shared more evenly across the company, but our operations teams have grown the most over the last several months and are therefore furthest out of balance with the sales we are seeing," Garcia said.

Garcia is the son of the richest person in Arizona, Ernest Garcia, II., who was ranked by Forbes as the 246th richest person in the world. Earnest has a net worth of around $4.6 billion and is the second-largest shareholder of Carvana.

Those being laid off will receive four weeks of pay plus one week for every year they have been with the company, the email read. The company will also be providing extended healthcare for three months, among other severance points.

"We aim to carry out this difficult decision in a transparent and thoughtful manner while providing meaningful assistance, resources and support to impacted team members," a Carvana spokesperson said.

This is a developing story. Tune in to 12 News for the latest information.

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