carvana co said it plans to complete a 1 billion reduction in operating costs by the second quarter of 2023 as the online carsales company seeks to right itself without resorting to layoffs after it snapped a streak of winning years in 2022 carvana cvna shares fluctuated between slight gains and losses after hours following a 01 gain in the regular session to close at 1008 “we expect these expense reductions to be broadbased across all large sga expense components but importantly we do not expect a reductioninforce to be part of this plan” carvana said in a statement “we came into the year positioned for growth similar to what we had experienced in our prior nine years” the company told shareholders in a letter “after the pandemic snarled automotive supply chains and historically rapidly rising interest rates combined to dramatically impact the affordability of used cars” “rising interest rates and market sentiment drove a significant shift in our priorities away from growth and toward profitability” carvana said “this led to markedly lower volumes than we had positioned for and as a result we have been carrying excess costs” the company reported a fourthquarter loss of 806 million or 761 a share compared with a loss of 89 million or 102 a share in the yearago period carvana reported total revenue fell to 283 billion from 375 billion in the yearago quarter as retail sales fell 23 to 86977 units analysts surveyed by factset had forecast a loss of 218 a share on revenue of 306 billion “we currently expect a sequential reduction in retail units sold in q1 2023 compared to q4 2022 as we continue to normalize our inventory size optimize marketing spend and make progress on our profitability initiatives” the company said carvana shares have jumped 112 year to date but are still down 92 over the past 12 months