ACV Auctions lays off more than 30 employees companywide

Last week, about 32 employees of ACV Auctions and its financing arm, ACV Capital, were laid off, according to a separation agreement obtained by The Buffalo News.

The job cuts affect about 19% of the unit’s 167 positions listed in the document. The agreement allocated each employee selected for the separation program by job title and age.

An ACV spokesperson declined to comment.

Although the reductions mentioned in the document focus on the ACV Capital unit, ACV has continued to create jobs in other areas of its business.

The company, which has locations in at least a dozen other U.S. cities, grew its revenue 14% to $481 million in 2023.

ACV CEO George Chamoun said during a February conference call with investors that the company would continue to invest in new capabilities at ACV Capital. ACV Capital reported a record revenue quarter to end 2023 and saw loan volume growth of 50% year-over-year, it said.

The company implemented a loan management system to provide a broader set of financing offerings, for example to dealers looking to source consumer vehicles.

“We remain confident that ACV Capital will be an important driver of long-term growth and profit,” Chamoun said on the call.

According to Zacks Investment Research, based on forecasts from four analysts, ACV is expected to post a loss of 8 cents per share in the first quarter. The company will release its first quarter results after the market closes on Wednesday, hosting a conference call at 5 p.m.

Cost control measures and realignment are nothing new for ACV, even as the company continues to grow from a startup that won the $1 million 43North competition in 2015 to an IPO six years later with an IPO on the NASDAQ stock exchange.

In 2022, the company initiated unspecified cost control measures due to slowing car sales, including used vehicles sold on ACV’s online auction platform, and challenges in supply chain that slows the production of new cars and reduces trade-ins of used vehicles.

Chamoun said at the time that he remained optimistic about the company’s long-term prospects, even as it needed to take steps to reduce operating expenses.

In 2023, sales grew faster than analysts expected, even as the auto wholesale market remains sluggish. ACV also projects 2024 revenue to increase nearly 30% to between $610 million and $625 million.

The company narrowed its fourth-quarter 2023 losses from a year ago and met analyst expectations.

And ACV settled an antitrust dispute with the National Auto Auctions Association that opens up a market for a few million more vehicles for the company. It will now be able to provide services to the 1,300 commercial consignors currently using the AutoIMS technology platform to connect to hundreds of physical auctions.

As production, supply and retail sales of new vehicles begin to improve, ACV officials have credited technological innovation and artificial intelligence for allowing the company to grow and stay on the path to profitability.