CarMax cuts corporate staff and faces lowered earnings estimates

CarMax is undergoing corporate restructuring and facing revised financial outlooks. The used car retailer recently laid off approximately 145 corporate employees, representing about 4% of its corporate staff. This marks the company’s third round of job cuts in less than 11 months, following reductions of 350 jobs in October 2025 and 230 in January.

CEO Keith Barr stated the changes are intended to help the company “move faster and create better alignment across teams.” The layoffs come as the business faces headwinds from high prices, rising interest rates, and increased gas prices. Barr has indicated a focus on improving the company’s digital shopping experience to reduce customer friction.

In parallel, Zacks Research has lowered its Q1 2028 earnings estimate for CarMax to $0.95 per share, down from a previous forecast of $1.01. While some analysts, such as JPMorgan Chase & Co. and Morgan Stanley, have recently raised their target prices, the stock maintains a consensus rating of “Reduce” according to MarketBeat data.