Fortune 500 retailer CarMax lays off 350 employees

Fortune 500 used car retailer CarMax, headquartered in Goochland County, is laying off about 350 employees nationally, including 55 workers in Virginia.

Of the 55 affected employees in Virginia, 25 are in the Richmond area, the nation’s largest used car retailer said in an email Thursday.

The 350 cut roles were in the Customer Experience Center (CEC) team and followed an internal review of that team, according to CarMax. Customer Experience Center employees assist customers as they buy and sell cars, including supporting customers with shopping and financing over the phone and online.

“We recently conducted a comprehensive review of our CECs and have determined that the reorganization of the CECs will help us best serve our customers and strengthen our business for the future,” CarMax said in a statement. “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.”

The company said it is offering support to affected employees, including severance, career support services and the opportunity to apply for open internal roles.

As of this past summer, CarMax had about 30,000 employees, including 3,300 in Virginia. The company has more than 250 stores in 41 states.

In summer 2024, CarMax laid off approximately 415 employees nationwide, including 14 employees in the Richmond region and approximately 400 drivers, according to the Richmond Times-Dispatch. The company said a review determined it needed fewer drivers with its updated logistics staffing model and eliminated 15 product delivery associate roles following a reorganization of the product department.

Founded in 1993 as a subsidiary of electronics retailer Circuit City, CarMax reported more than $26 billion in fiscal 2025 revenue.

For the second quarter of its fiscal 2026 year, CarMax reported total revenues of $6.59 billion, down 6% from the second quarter of fiscal 2025. For the previous six months, though, CarMax had $14.14 billion in total revenues, down 0.1% from the first six months of fiscal 2025.

In the second quarter, CarMax’s combined retail and wholesale used vehicle sales numbered 338,031, down 4.1% year-over-year.

“While this was a challenging quarter, we remain confident in our long-term strategy and the strength of the earnings model that we have built,” CarMax President and CEO Bill Nash said in a statement.

As of 2:39 p.m. Thursday, CarMax shares were trading for $42.34, down from $41.43 at open and $42.46 from the previous day’s close.

The company’s selling, general and administrative expenses in the quarter decreased 1.6% to $601.1 million compared to fiscal 2025’s second quarter.

Nash also said, “We will continue to drive SG&A efficiency, targeting at least $150 million in incremental SG&A reductions over the next 18 months.”

In September 2024, the company announced that it would be naming sponsor for the Richmond Flying Squirrels’ new ballpark, set to open in spring 2026. Dubbed CarMax Park, the baseball stadium is expected to cost about $110 million, and CarMax’s contribution was not disclosed.