CarMax is furloughing about15,500 employees, effective April 18, while also slashing executive pay and other costs.
The cutbacks come as about half the company’s 217 U.S. stores are ether closed or operating on a limited basis due to the coronavirus outbreak, and “consumer demand has progressively deteriorated in recent weeks,” the retailer said in a statement Wednesday.
Affected employees are being given transition pay prior to the start of their furlough. They are not being paid by CarMax after their furlough date, a company spokesperson said in an email. CarMax said it will cover all affected employees’ costs under the company’s medical plan until further notice.
“This has been a very difficult decision,” CEO Bill Nash said in a 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. I believe that these steps will help our company withstand the current environment and successfully emerge…
