Online used-car retailer Carvana Co. will lay off about 2,500 employees, the company said on Tuesday, as part of its plan to move operations away from its inspection and reconditioning center in Euclid, Ohio and a few logistics hubs.

Shares were down about 7% to $36.02.

Carvana added that all impacted team members, primarily in operational groups, would receive four weeks of pay and an additional week for every year that they have been with the company.

The move "will result in Carvana restoring a better balance between its sales volumes and staffing levels," the company said in an regulatory filing.(https://bit.ly/3ysMdKf)

Carvana also said that its executive team would forego their salaries for the remainder of the year to help contribute to the severance pay for departing team members.