CarMax laying off 600 service associates
RICHMOND, Va. (AP) - CarMax says it is laying off 600 employees as the auto retailer tries to cut costs due to a decline in car and truck sales.
Spokeswoman Trina Lee says the reductions are in its service operations departments at a majority of its 60 production superstores. The employees were responsible for reconditioning vehicles.
Lee says the Richmond, Va., company notified the affected workers on Wednesday. The company is offering severance packages and expects about $7 million in severance costs will be included its results for the third quarter ending Nov. 30.
CarMax said last month it was reducing staffing levels and temporarily slowing store growth because of slowing sales.
The company has more than 15,000 employees at 99 stores and its headquarters.
