CarMax Cuts 145 Jobs in Latest Layoffs

CarMax recently laid off 145 corporate employees last week, representing about 4% of its corporate headcount. This marks the third round of job cuts at the used-car retailer in under a year. The affected employees, mostly salaried workers, were notified on Friday, with immediate effect.

Departing workers will receive pay until October 2 and are eligible for severance benefits. These reductions span multiple functions, including technology, human resources, product, accounting, and marketing, with approximately 60 positions eliminated from the technology department. The layoffs occurred at CarMax's Richmond-area offices, Dallas, Atlanta locations, and its Edmunds subsidiary in California.

This action is the first layoff under new CEO Keith Barr, who took over in mid-March. CarMax previously cut 350 jobs in October 2025 and 230 more in January 2026, totaling over 1,000 employees shed since 2024. The company aims to operate leaner to become more competitive and drive sustainable growth.

The used-car market faces pressure from high vehicle prices and rising interest rates, impacting demand. CarMax reported first-quarter revenue increased 6.2% to $8.01 billion, but net earnings fell 11.8% to $185.6 million. The company is implementing a four-pillar strategy focused on pricing, digital capabilities, financing, and cost reduction.