CarMax (KMX) to Cut 600 Jobs from Service Operations; Will Incur $7M Charge
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CarMax, Inc. (NYSE: KMX) today announced that, as a part of its ongoing plan to control costs and enhance its long-term competitive position, it is reducing its service operations workforce by more than 600 associates. The reductions are being made in a majority of the company's production superstores, where vehicles are reconditioned.
About a third of the reductions are being made in response to the company's previously reported lower sales.
As part of the company's long-term initiative to decrease costs in the reconditioning area, CarMax is restructuring its cosmetic operations, which resulted in the remaining reductions.
In connection with the reductions, the company estimates that it will incur approximately $7 million of severance costs, which will be included in selling, general and administrative costs in its Q3.
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States.
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