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Marc Cannon, executive vice president, confirmed to FOX Business the impacted employees were part of the initial 7,000 furloughed as efforts were made to become more nimble.
“The actions are a result of a successful move to digital and store efficiencies,” Cannon explained.
The cuts come as U.S. unemployment rockets to historical highs as the COVID-19 pandemic shut most businesses entirely in March. Reopenings are gradually taking place across the country.
Americans filing for unemployment benefits totaled 1.88 million, according to the Labor Department’s report on Thursday. Continuing claims settled at 21.5 million, a slight increase from the prior data.
The jobs report for May will be released Friday and economists expect losses to number around 8 million. While severe, that is less than April’s 20+ million. The unemployment rate is expected to climb to 19.8 percent.
Shares of AutoNation were little changed on Thursday and have fallen over 14 percent this year.