CarMax to furlough more than 15,000 associates

NEW YORK (WRIC) — Beginning April 18, more than 15,000 CarMax associates will be furloughed as a result of store closures during the COVID-19 pandemic.

The company said in a statement Wednesday that “any ongoing furlough determinations are subject to change due to future government mandates affecting store openings or closings, as well as future business conditions.”

Bill Nash, CarMax president and CEO, called the decision “very difficult.”

“Each and every one of our associates are incredibly important to us,” he said. “We will not rest until we can start pulling our team back together.”

He added: “I believe that these steps will help our company withstand the current environment and successfully emerge from these difficult times.”

CarMax says it will offer transition pay to each impacted employee. Additionally, CarMax will continue to help cover associates’ medical expenses.

The statement adds that Nash will forego 50% of his salary and each member of the company’s senior leadership team is taking a reduction in pay until further notice.