RICHMOND, Va. (WWBT) - CarMax will be furloughing about 15,500 employees nationwide starting on April 18.
The furloughs will impact 450 people in Virginia, a spokesperson said.
The company says the furloughs are in response to the coronavirus pandemic, which due to the conditions, has caused about half of the company’s stores to close or operate on a limited basis.
The majority of the furloughs nationwide are at locations where stores have closed due to government mandates.
“This has been a very difficult decision. 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,” said Bill Nash, CarMax president and CEO. “I believe that these steps will help our company withstand the current environment and successfully emerge from these difficult times.”
Before the furloughs begin, CarMax said it will provide transition pay to impacted employees.
“In addition, for furloughed associates enrolled in CarMax’s medical plan, CarMax will pay the current cost of the associate’s portion of the medical plan, plus the employer portion, until further notice,” CarMax said.
Effective immediately, Nash will also forgo half of his salary and each member of the leadership team is taking a reduction in pay until further notice, a release said.
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