CarMax is once again slimming down its workforce, this time axing around 350 positions nationwide. Most of the cuts hit its Customer Experience Centers, the network of employees who help buyers through every step of purchasing a used car.

For example, the Richmond, Virginia–based company confirmed roughly 25 local employees were affected. The rest are spread across the country.

The layoffs follow a tough stretch for the used-car giant, which has been wrestling with slowing sales and tighter margins since summer

CarMax’s second-quarter earnings showed a 6% revenue drop to $6.59 billion, and profit per share slid nearly 25%.

It’s the company’s second major round of cuts in just over a year. In mid-2024, roughly 415 roles were eliminated across logistics and corporate offices as part of a restructuring push.

The latest CarMax cuts arrived abruptly

Several affected workers told local news outlet 12 On Your Side they were notified via short video calls or discovered the news only after being locked out of company systems.

One former employee in Richmond said the change blindsided teams who thought their roles were safe. Others described a recent shift in tone at the company, with more pressure to trim costs and “align with efficiencies.”

CarMax explained the move as the result of a “comprehensive review” of its customer support operations. It said “new technologies” had made certain positions redundant. The company also said the layoffs reflect an effort to “realign key work areas” after streamlining customer communications.

Employees, however, painted a grimmer picture in online discussions

On Reddit, workers described a culture shift that’s left morale shaken.

Some noted that roles created during the post-COVID sales surge, when call volume was at record highs. They were reportedly among the first to go.

Others took issue with the company’s handling of the layoffs, calling alleged prerecorded dismissal messages “inhumane.”

A few insiders argued that the cuts were overdue. They claimed the transaction-support teams had become inefficient and that demand simply no longer justified the staffing levels.

But many pushed back, saying the company’s problems go deeper, pointing to falling stock prices, reduced store traffic, and even an ongoing federal investigation into its financial reporting.

CarMax said it’s offering severance, career services, and the chance to apply for other internal positions

But employees say that doesn’t ease the uncertainty, especially as the job market cools.

The layoffs place CarMax in familiar company. Amazon and UPS both announced massive workforce reductions the same week, underscoring a broader reset across industries that bulked up during the pandemic.

For now, CarMax’s realignment may stabilize its balance sheet, but it’s left hundreds of workers suddenly out of gear.