Around two months after laying off 350 customer service employees, national used-car retailer CarMax $KMX ( ▲ 0.94% ) has just slashed hundreds of more jobs.
Driving the news: 230 employees from The Home Office and CarMax Auto Finance departments were told Wednesday they “no longer need to report to work,” reports Virginia Business.
The affected employees (the majority of them salaried) will be compensated through Jan. 31.
The company also said impacted employees have been offered severance, career support services, and can apply for open internal roles.
For context: CarMax has been going through it. Weaker earnings and the surprising resignation of former CEO Bill Nash on Dec. 1, 2025, have driven the company to reorganize.
What they're saying: “After careful consideration, we determined that the elimination of certain roles was necessary to reduce costs and operate with a faster, leaner corporate workforce," CarMax said in a statement.
Bottom line: The used car market has become hyper-competitive and the company's market share in used vehicle retail has declined materially as competitors price their inventory more aggressively. These conditions have put CarMax behind the eight ball and broader restructuring efforts from the company are highly likely to continue.
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