CarMax Announces Third Round of Corporate Layoffs in Less Than a Year
CarMax has laid off approximately 145 corporate employees, marking the third round of job cuts within less than a year. The reductions affect workers across multiple departments and locations including Richmond, Dallas, Atlanta, and California-based Edmunds subsidiary. This move is part of CEO Keith Barr's strategy to reduce costs and improve competitiveness following his appointment in March after predecessor Bill Nash was fired last year. The used-car retailer has cut over 1,000 jobs since the beginning of 2024 amid a challenging market environment characterized by high vehicle prices and rising interest rates. CarMax aims to achieve $200 million in SG&A expense savings by fiscal year-end 2027 as part of its four-pillar strategy focused on pricing, digital capabilities, financing growth, and cost reduction. Despite the job cuts, CarMax reported a 6.2% revenue increase for Q1 but saw net earnings fall by 11.8%. The company's stock has risen 45% year-to-date.
Tickers: $KMX
Topics: CarMax CEO change cost-cutting layoffs