AutoNation permanently lays off 3,500 workers
AutoNation is permanently laying off 3,500 employees at its Fort Lauderdale headquarters and at various U.S. dealership locations.
The company said in a statement first reported by Automotive News that it was having to adjust to the “new normal.”
“The business environment continues to change and AutoNation is adapting by restructuring and reducing the work force,” said Marc Cannon, AutoNation’s chief customer experience officer. “At AutoNation we have adjusted to the new normal, which focuses on digital and store efficiencies...As a result, we have made the difficult decision to eliminate approximately 3,500 positions in the field and at headquarters, most of which were associates on unpaid leave.” Approximately 250 workers in South Florida are affected. Following the cuts, 2,700 employees will remain in the region.
In April, AutoNation had announced it was furloughing 7,000 of its approximately 25,000 employees. Shortly thereafter, it received Paycheck Protection Program loans totaling $77 million in an attempt to bring back those employees, it said. But after outcry that the PPP funds were intended for smaller businesses, the company decided to return them.
AutoNation previously announced in April that Cheryl Miller, who had been appointed as CEO, remains on leave for undisclosed health reasons. Both Miller and Mike Jackson, the company’s chairman and current CEO, are taking 50% salary cuts. Other executives and staff are taking cuts of 20 to 35%.
Although auto sales showed signs of recovery in May, the industry continues to feel the effects of the economic shutdowns instigated by the coronavirus outbreak. In April, dealerships owned by Norman Braman furloughed more than 300 workers and laid off 55; another 300 Florida-based workers were laid off around the same time by Atlanta-based Asbury Automotive Group.
Update: This story has been changed to reflect the number of South Florida workers laid off, and to clarify Cheryl Miller and Mike Jackson’s roles at AutoNation.
This story was originally published June 4, 2020 at 4:39 PM.
