CarMax Lays Off 145 Corporate Employees Under New CEO

CarMax laid off approximately 145 corporate employees on September 19, 2026, marking the first round of job cuts under Chief Executive Officer Keith Barr. The reductions primarily affected salaried personnel in technology, human resources, product, accounting, and marketing. The technology department was most heavily impacted, accounting for about 60 of the eliminated roles. The cuts spanned corporate offices in Richmond, Dallas, and Atlanta, as well as the Edmunds auto research subsidiary in California.

This action is the third round of layoffs in less than a year, following the removal of 350 jobs in October 2025 and 230 in January 2026. Since 2024, the used-car retailer has eliminated more than 1,000 positions to establish a leaner cost structure. These measures come as the company faces a market pressured by high vehicle prices and rising interest rates, which have suppressed consumer demand.

CEO Keith Barr is implementing a four-pillar strategy focused on competitive pricing, digital capabilities, in-house financing, and reduced reconditioning costs. The company aims to achieve $200 million in selling, general, and administrative expense savings by the end of fiscal year 2027. These cuts occur despite a 6.2% year-over-year increase in net sales and operating revenues to $8.01 billion for the first quarter of fiscal 2027, though net earnings fell 11.8% to $185.6 million during that period.