Fortune 500 retailer CarMax lays off 230 employees, many in Virginia

Fortune 500 used car retailer CarMax, based in Goochland County, has laid off approximately 230 employees.

Of the 230 positions cut, 113 are in the Richmond area, according to CarMax public relations. The affected employees were informed Wednesday and “no longer need to report to work,” the company said, although they are paid through at least Jan. 31 and will receive severance.

“We have made the difficult decision to reduce Home Office and CarMax Auto Finance staffing by approximately 230 positions,” CarMax said in a statement. “After careful consideration, we determined that the elimination of certain roles was necessary to reduce costs and operate with a faster, leaner corporate workforce.”

The affected roles “span multiple departments and a variety of levels,” including technology, human resources, legal and compliance, marketing, accounting and finance, and others, the company said. “Impacted roles were almost entirely salaried associates.”

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

The most recent round of layoffs follow the terminations of 350 employees nationally in October 2025 and the departure of Bill Nash as president and CEO in November. The company said in December its search for a permanent CEO was underway.

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.

CarMax has approximately 30,000 employees. As of summer 2025, that count included 3,300 in Virginia. The company has more than 250 stores in 41 states.

Founded in 1993 as a subsidiary of electronics retailer Circuit City, CarMax reported more than $26 billion in fiscal 2025 revenue, down 0.7% from the previous year.

For its fiscal 2026 third quarter, which ended Nov. 30, 2025, CarMax reported $5.79 billion, down 6.9% from the third quarter of fiscal 2025. For the previous nine months, however, CarMax reported $19.93 billion in revenue, down 2% from the same period in fiscal 2025.

The company’s combined retail and wholesale used vehicle unit sales for the quarter totaled 297,160, a 7.2% decline from the previous year.

At market close Wednesday, CarMax shares were trading for $46.80, up from $46.28 at market open. In after hours trading, CarMax shares rose to $47.70 as of 4:21 p.m.

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 $117 million, and CarMax’s contribution was not disclosed.