Richmond, Virginia-based CarMax has just completed its second round of layoffs in 14 months, this one impacting 350 customer service positions, a month after it reported a net-earnings year-on-year drop of 28%.
The automotive retailer confirmed the layoffs to RichmondBizSense, saying, “We recently conducted a comprehensive review of our CECs [customer experience centers] and have determined that the reorganization of the CECs will help us best serve our customers and strengthen our business for the future. After implementing several processes and technological improvements to streamline our customer communication support function, we are now able to realign key work areas, resulting in the consolidation of some teams.”
Impacted employees will be offered severance pay, career support services, and the opportunity to apply for open positions elsewhere in the company, according to the report.
The layoffs come amid broader financial headwinds. A sharp Sept. 25 stock sell-off, allegedly the result of an unexpected jump in loan losses at CarMax Auto Finance, has resulted in more than one legal firm alleging securities fraud.
CarMax has more than 250 retail locations throughout the U.S., and over 30,000 employees. Founded in 1993, it is considered the largest marketplace for used vehicles in the U.S.
