CarMax Cuts 145 Corporate Jobs in Third Layoff Round

CarMax cut about 145 corporate jobs on Friday, September 18, the company’s third round of layoffs in less than a year. The cuts affected about 4% of its corporate staff, according to reports citing the company.

About 60 of the affected workers were in the Richmond, Virginia, area. Others worked at corporate offices in Dallas and Atlanta, and at Edmunds, CarMax’s California-based automotive research subsidiary. The cuts included about 60 technology roles, according to Quartz’s report.

CarMax said the move would help it operate with a leaner corporate workforce and align staffing with its priorities. Employees were told they no longer needed to report to work; the company said they would be paid through October 2 and receive severance.

The latest reduction follows 350 job cuts in October 2025 and about 230 in January 2026. Together, the three rounds eliminated roughly 725 positions. They are the first layoffs since Keith Barr became CEO in March.

The reductions fit a broader cost-cutting plan. CarMax said in June that it was on track to reach $200 million in annualized selling, general and administrative savings by the end of fiscal 2027. That goal covers expenses beyond payroll, so the job cuts are one part of a wider effort.

The company’s latest results showed sales growth but continued pressure on earnings. In its first quarter of fiscal 2027, revenue rose 6.2% to $8 billion, while earnings per share slipped to $1.31 from $1.38 a year earlier.

CarMax’s earnings call on September 29 will offer investors a fresh view of sales and costs. They will be watching for signs that savings are building while the retailer works to grow vehicle sales and improve its customer experience.