We welcome you to JobBank USA and hope your job hunting experience
is a pleasant one. We hope you find our resources useful.
October 2, 2008
CarMax Inc. said that it is eliminating 600 associates from its service operations work force at production superstores nationwide. CarMax operates two stores in Orlando and Sanford, but only Orlando is a production superstores, where vehicles are reconditioned.
Of the 322 staff members employed at the Orlando and Sanford locations, 15 associates in Orlando will be let go. A buying center located in Sanford will remain unaffected.
About one-third of the reductions are based on the company’s sales decline in the second quarter ending Aug. 31.
New vehicle sales fell more than 25 percent in the last year from $104.8 million to $77.8 million. Used vehicle sales dropped 12.5 percent from the same time last year, and sales of wholesale vehicles fell 15.8 percent.
The remaining layoffs are the result of the company’s initiative to decrease costs in reconditioning and restructure its cosmetic operations, a release said.
Due to the reductions, CarMax estimates severance costs of $7 million, including selling, general and administrative costs for the third quarter ending Nov. 30.
The company is not expecting any future reductions at this time, said a representative.
CarMax (NYSE: KMX), based in Richmond, Va., operates 99 used car superstores in 46 markets nationwide.
Email This Page!