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CarMax Is Cutting Jobs Again—Is The Used-Car Boom Finally Cracking?

CarMax, the largest used-car retailer in the U.S., is cutting jobs for the third time in less than a year as a combination of high vehicle prices, elevated borrowing costs, thinner retail margins, and internal operating inefficiencies reshape the economics of the used-car business. The latest reduction of 145 corporate positions follows cuts of 350 jobs in October 2025 and another 230 in January 2026, taking disclosed reductions across the three rounds to 725 positions. Yet the underlying picture is more complicated than a straightforward collapse in demand. In its latest quarter, CarMax generated $8 billion in sales, up 6.2% year over year, while combined retail and wholesale vehicle volumes increased 3.3%. The pressure is instead emerging from affordability, profitability, and execution. New CEO Keith Barr is responding with lower costs, more competitive pricing, expanded financing, digital improvements, and a broader effort to make CarMax faster and leaner.