\u2018I\u2019m kind of just in a state of shock,\u2019 an anonymous former CarMax staffer told the network after receiving their pink slip. \u2018This is a company I wanted to retire with.\u2019<\/p>\n
CarMax said the recent layoffs are not attributed to AI investments, but rather a result of ‘modernization.’ The company declined to tell the Daily Mail how many calls the remaining 1,200 customer service staffers will receive in a day.<\/p>\n
The layoffs come after CarMax disappointed investors, reporting a 6.3 percent sales drop when Wall Street had expected a minor gain.<\/p>\n
Its share price has tumbled nearly 48 percent since the start of the year. Executives blamed the decline on America’s struggling car market<\/a>.\u00a0<\/p>\n America’s largest used car retailer, CarMax, laid off 350 staffers from its customer service team\u00a0<\/p>\n ‘The consumer has been distressed for a little while,’ Bill Nash, the company\u2019s CEO, said in a late September earnings call.<\/p>\n Americans have been straining under record\u2013high car costs.<\/p>\n The average price of a new vehicle has jumped 30 percent in the past three years to more than $50,000, with typical monthly payments topping $750 at around a six percent interest rate.<\/p>\n Those sky\u2013high prices have sent a record number of customers to used vehicle lots.<\/p>\n But secondhand cars aren\u2019t cheap either \u2014 the average used vehicle sold for nearly $26,000 in September.<\/p>\n Rising costs have hammered companies focused on used car sales. In September, subprime auto lender TriColor collapsed into bankruptcy<\/a>.\u00a0<\/p>\n Last week, PrimaLend Capital Partners also filed for Chapter 11<\/a> bankruptcy.\u00a0<\/p>\n \u2018Low\u2013income car buyers are getting hit the hardest right now,’ Erin Witte, director of consumer protection at Consumer Federation of America, told the Daily Mail.<\/p>\n The company, which specializes in used vehicle sales, just reported weaker-than-expected sales\u00a0<\/p>\n ‘The consumer has been distressed for a little while,’ Bill Nash, the company’s CEO since 2016, said in a recent earnings call<\/p>\n She said TriColor\u2019s bankruptcy ‘shows just how fragile the auto finance market has become.’<\/p>\n CarMax said more than a thousand agents are still in place to help shoppers find cost\u2013cutting deals.<\/p>\n ‘After implementing several processes and technological improvements to streamline our customer communication support function, we are now able to realign key work areas, resulting in the consolidation of some teams,’ a CarMax spokesperson said.<\/p>\n ‘We are providing support to the associates who are impacted, including offering severance, career support services, and the opportunity to apply for open internal roles.’<\/p>\n But the move follows recent workforce cuts at Rivian, Ford, and GM \u2014 all of which have trimmed technical or white\u2013collar roles<\/a> in the past month.\u00a0<\/p>\n And it\u2019s not just the auto industry. Layoffs are rippling across the economy, rising 140 percent in the past year<\/a>.\u00a0<\/p>\n Target cut 1,800 jobs<\/a> at its headquarters. Proctor & Gamble slashed 7,000<\/a>. Microsoft axed 9,000 positions<\/a>.<\/p>\n And, Amazon is plotting 30,000 job cuts<\/a> among its white collar staff, and has already slashed 14,000 positions<\/a>, despite beating Wall Street’s revenue expectations.<\/p>\n The tech giant said the reductions are part of its shift toward artificial intelligence.<\/p>\n \u2018Some may ask why we’re reducing roles when the company is performing well,’ Beth Galetti, an HR lead at Amazon, wrote in a public note.<\/p>\n ‘What we need to remember is that the world is changing quickly. This generation of AI is the most transformative technology we’ve seen since the internet, and it’s enabling companies to innovate much faster than ever before.’<\/p>\n","protected":false},"excerpt":{"rendered":"Another big name is tightening its belt as America\u2019s layoff wave spreads \u2014 and this time, it\u2019s hitting…\n","protected":false},"author":2,"featured_media":272658,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,98,74,3834],"class_list":{"0":"post-272657","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-dailymail","12":"tag-technology","13":"tag-yourmoney"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/272657","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=272657"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/272657\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/272658"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=272657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=272657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=272657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"America's](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/11\/103552369-15247133-image-a-24_1762192153716.jpg\")
<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/11\/103552397-15247133-The_company_which_specializes_in_used_vehicle_sales_just_reporte-a-4_176232257198.jpeg\")
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