Carvana (CVNA), one of the biggest car rental services, said Friday it was laying off nearly 1,500 employees after a sharp decline in sales and persistently falling stock.

With inflation remaining stubborn and interest rates soaring, demand for cars has shrunk this year. The Tempe, Ariz.-based company "failed to accurately predict how this would all play out and the impact it would have on our business," Ernie Garcia, Carvana's CEO, told CNBC.

The affected workforce from Friday's layoffs represents around 8% of the company's staff. Carvana's move to shed employees comes after a turbulent few weeks for the tech industry, with major firms like Amazon (AMZN), Meta Platforms (META), and Microsoft (MSFT) announcing massive layoffs.

Meta, Facebook's parent company, terminated over 11,000 people earlier this month. Amazon and Microsoft, meanwhile, have let go 10,000 and 1,000 employees, respectively.

Carvana's stock hit a record high $376.83 per share in August 2021, driven by growing demand for used cars amid supply chain issues. The company's value has fallen off a cliff this year, by nearly 97%.

Earlier this month, the company posted underwhelming third quarter results. Carvana recorded $3.39 billion in revenue in the third quarter, a 3% decline from the previous year.

"This economic environment remains uncertain, but we are focused squarely on the goal of driving the business to profitability," Garcia said in a statement.

Shares of Carvana Friday afternoon were at $7.78, down $0.54, or 6.49%.