Asbury Automotive Group is furloughing 2,300 employees and slashing executive pay as a result of the coronavirus pandemic, according to a regulatory filing.
The retailer cited a “sudden and significant decline” in U.S. vehicle sales and service operations for the cutbacks, the company said Friday.
Asbury, the nation’s seventh-largest dealership group, said it also implemented temporary pay cuts for all employees. CEO David Hult will see his salary reduced by 50 percent, while base salaries for senior vice presidents, regional and field vice presidents and national directors will be reduced 20 percent. All other vice presidents will receive a 10 percent salary cut.
The company said it was acting “decisively in an effort to right-size its business, reduce expenses and mitigate the financial impact” of the virus.
In addition to the furloughs, hours are being reduced across the retailer’s 88 stores and the company will suspend a 401(k) match for employees.
Asbury has “significantly…