Coronavirus pushes CarMax to furlough 15K workers
Auto dealer's leadership to take pay cuts
Fox Business Flash top headlines for April 8
Fox Business Flash top headlines are here. Check out what's clicking on FoxBusiness.com.
Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here.
Used car seller CarMax will furlough about 15,500 employees later this month, the company announced Wednesday.
CarMax has closed about half of its stores due to the coronavirus pandemic. The company said most of the furloughed employees work at those shuttered locations. The furloughs will go into effect April 18.
Bill Nash, CarMax’s president and CEO, said the move was designed to help the company "withstand the current environment and successfully emerge from these difficult times."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KMX | CARMAX INC. | 80.86 | +4.22 | +5.51% |
TESLA TO FURLOUGH WORKERS, CUT EMPLOYEE SALARIES
"This has been a very difficult decision," Nash said in a written statement. "Each and every one of our associates are incredibly important to us. We will not rest until we can start pulling our team back together."
CarMax said it would pay for furloughed employees’ portion of its medical plan "until further notice."
Nash said he’s also forgoing half of his salary. Other members of CarMax’s leadership are also taking pay cuts until further notice, according to the company.
A CarMax dealership in Duarte, California. (File photo)
NISSAN TO FURLOUGH ABOUT 10,000 WORKERS
The company has also instituted a hiring freeze, reduced inventory levels, cut back on marketing spending and stopped store expansions and remodeling.
"We will continue to keep our stores open where permitted to support our customers' essential needs for reliable vehicles and to provide as many jobs as possible for our associates," Nash said. "For the safety of our associates and customers, we have implemented social distancing practices and enhanced cleaning measures in all locations. We are focused on positioning the company for a strong recovery when this crisis is over."