Rising fuel costs and other economic problems are causing American consumers to have less money to devote towards new vehicles. Because of this, the automotive industry is suffering. In hopes of saving their profits, many in this sector are laying off employees. For similar reasons, CarMax Inc.
recently announced that they will be doing away with 600 positions, 65 of which will be Baltimore
and Washington, D.C. jobs
The company plans on cutting these associates from the part of its work force that is devoted to service operations. In the region alone, CarMax has six used-car superstores and one new car store, according to Trina Lee, who is the company’s public relations director.
Throughout the Baltimore and D.C.
area, CarMax employs around 1,590 people. The jobs that stand to be eliminated will mostly be those that are responsible for the reconditioning of the cars. The 65 individuals who will be laid off only represent a faction of the associates who hold this job with the company in this region, said Lee.
Approximately one-third of the planned layoffs are a direct result of the sales decline the company experienced in the second quarter, which ended on August 30th. The sales of new vehicles fell by more than 25 percent during the course of the last year, dropping from $104.8 million to $77.8 million.
Because of the difference in price, used vehicle sales did not experience as drastic of a loss of revenue. This area of the company’s profits dropped 12.5 percent. During the same period of time the sales of wholesale vehicles fell by 15.8 percent.
The other two thirds of the layoffs are part of the company’s efforts to minimize the costs of reconditioning vehicles. According to a recent press release, the company is in the middle of restructuring its cosmetic operations.
Labels: Washington D.C. jobs