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CarMax has closed about half of its stores due to the coronavirus pandemic. The company said most of the furloughed employees work at those shuttered locations. The furloughs will go into effect April 18.
Bill Nash, CarMax’s president and CEO, said the move was designed to help the company “withstand the current environment and successfully emerge from these difficult times.”
“This has been a very difficult decision,” Nash said in a written statement. “Each and every one of our associates are incredibly important to us. We will not rest until we can start pulling our team back together."
CarMax said it would pay for furloughed employees’ portion of its medical plan “until further notice.”
Nash said he’s also forgoing half of his salary. Other members of CarMax’s leadership are also taking pay cuts until further notice, according to the company.
The company has also instituted a hiring freeze, reduced inventory levels, cut back on marketing spending and stopped store expansions and remodeling.
“We will continue to keep our stores open where permitted to support our customers' essential needs for reliable vehicles and to provide as many jobs as possible for our associates,” Nash said. “For the safety of our associates and customers, we have implemented social distancing practices and enhanced cleaning measures in all locations. We are focused on positioning the company for a strong recovery when this crisis is over.”