The CarMax store at 11090 W. Broad St. is one of two stores it has in the Richmond region. (BizSense file photo)
Locally based used car giant CarMax has shed hundreds of employees nationwide in recent weeks in two rounds of layoffs.
The Fortune 500 firm, headquartered in Goochland’s West Creek area, confirmed this week that the first round of cuts occurred last month, when approximately 400 drivers in its logistics division were let go.
The second, smaller round occurred this week, affecting 15 corporate positions.
“I can confirm that CarMax made the difficult decision to reduce our workforce across two business areas recently. We do not anticipate any further broad reductions in our workforce,” the company said in an emailed statement.
It said the 400 eliminated logistics drivers were located in various locales across the country. Those positions were eliminated following a review of its logistics network.
“As a result of these strategic changes, we identified that we do not require as many drivers to support the updated staffing model,” the company said.
The second, more recent round of layoffs was communicated to employees earlier this week. The company said those 15 eliminated positions were in product delivery roles and were the result of changes at what it calls its Home Office, which includes its headquarters at 12800 Tuckahoe Creek Parkway in West Creek and its newer Midtown Technology and Innovation Center at 2200 W. Broad St. in Richmond.
Of the 415 affected employees, the company said 14 are based in the Richmond area.
The company has 2,300 employees locally and nearly 30,000 in total.
CarMax said it is offering support to the affected employees such as severance, career counseling and the opportunity to apply for other positions within the company. It said nearly 20 percent of the impacted logistics employees are transitioning to open roles elsewhere within the company and approximately half of this week’s impacted employees have applied for new roles to stay onboard.
“And we are hopeful that most will,” it said.
Known for its used car superstores, of which it has 245, CarMax was founded in Richmond in the early 90s as a spinoff of Circuit City. It is now one of region’s largest employers and one of the area’s biggest companies by revenue. It ranked 141 on this year’s Fortune 500 list thanks to $31 billion in revenue last year.
The company reported net earnings of $152 million in its most recent fiscal quarter that ended May 31, down from $228 million in the same period of 2023.
It posted $7.1 billion in net sales and revenue for the quarter, down from $7.6 billion in the same period last year. It sold 358,000 vehicles during those three months.
Its stock, trading on the New York Stock Exchange under the symbol KMX, closed Wednesday at $82.49 per share, up 8 percent this year. Its market cap is $12.87 billion.
The CarMax store at 11090 W. Broad St. is one of two stores it has in the Richmond region. (BizSense file photo)
Locally based used car giant CarMax has shed hundreds of employees nationwide in recent weeks in two rounds of layoffs.
The Fortune 500 firm, headquartered in Goochland’s West Creek area, confirmed this week that the first round of cuts occurred last month, when approximately 400 drivers in its logistics division were let go.
The second, smaller round occurred this week, affecting 15 corporate positions.
“I can confirm that CarMax made the difficult decision to reduce our workforce across two business areas recently. We do not anticipate any further broad reductions in our workforce,” the company said in an emailed statement.
It said the 400 eliminated logistics drivers were located in various locales across the country. Those positions were eliminated following a review of its logistics network.
“As a result of these strategic changes, we identified that we do not require as many drivers to support the updated staffing model,” the company said.
The second, more recent round of layoffs was communicated to employees earlier this week. The company said those 15 eliminated positions were in product delivery roles and were the result of changes at what it calls its Home Office, which includes its headquarters at 12800 Tuckahoe Creek Parkway in West Creek and its newer Midtown Technology and Innovation Center at 2200 W. Broad St. in Richmond.
Of the 415 affected employees, the company said 14 are based in the Richmond area.
The company has 2,300 employees locally and nearly 30,000 in total.
CarMax said it is offering support to the affected employees such as severance, career counseling and the opportunity to apply for other positions within the company. It said nearly 20 percent of the impacted logistics employees are transitioning to open roles elsewhere within the company and approximately half of this week’s impacted employees have applied for new roles to stay onboard.
“And we are hopeful that most will,” it said.
Known for its used car superstores, of which it has 245, CarMax was founded in Richmond in the early 90s as a spinoff of Circuit City. It is now one of region’s largest employers and one of the area’s biggest companies by revenue. It ranked 141 on this year’s Fortune 500 list thanks to $31 billion in revenue last year.
The company reported net earnings of $152 million in its most recent fiscal quarter that ended May 31, down from $228 million in the same period of 2023.
It posted $7.1 billion in net sales and revenue for the quarter, down from $7.6 billion in the same period last year. It sold 358,000 vehicles during those three months.
Its stock, trading on the New York Stock Exchange under the symbol KMX, closed Wednesday at $82.49 per share, up 8 percent this year. Its market cap is $12.87 billion.