On the same day the company closed its purchase of ADESA, Carvana announced via a filing with the Securities and Exchange Commission on Tuesday a workforce reduction of approximately 2,500 employees.

Carvana said the workforce reduction is primarily in operational groups in connection with its previously announced plans “to better align staffing and expense levels with sales volumes.”

The company said in the filing that all impacted team members will have the opportunity to receive four weeks of pay plus an additional week for every year they have been with Carvana.

Carvana also said impacted team members will also have the opportunity to receive extended healthcare coverage, pay equal to early vesting of certain previously granted equity awards, recruiting and resume support, and continuing participation in certain other company programs.

Carvana went on to state in the filing that the executive team is foregoing salaries for the remainder of the year to help contribute to the severance pay for departing team members.

In connection with these “right-sizing initiatives,” Carvana noted that over the next several weeks it will be transitioning operations away from its Euclid, Ohio, reconditioning center and “a few” logistics hubs.

“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,” the company said in the filing.

The company mentioned additional materials on Carvana’s operating plan in the current industry and macroeconomic environment will be made available on its investor relations website later this week.