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Cox Automotive cuts 1,600 jobs in North America

Cox Automotive eliminated about 1,600 positions in North America, including 1,500 in the US, as the Atlanta dealership services company restructures and prepares to expand digital initiatives amid the coronovirus epidemic.

The affected employees played corporate and field roles, Cox spokesman Chintan Talati said on Wednesday. He said most of those who worked for the company’s Mannheim wholesale auction unit worked.

About 130 jobs were cut in Canada, and all affected workers were, according to Cox, on temporary layoffs in that country.

“As Cox Automotive continues to develop its business priorities and organizational structure in response to COVID-19, we have made the difficult decision to eliminate 1,600 North American positions,” Talati said in a statement. “While we regret the impact these moves have on our employees and their families, we are working to build a Cox Automotive that is ready to meet changing client needs and lead the industry in the future is.”

Cox said about 1,100 of the 1,500 affected positions in the US are part of Mannheim. In March, Mannheim moved to all-digital auctions to slow the spread of COVID-19, a disease caused by conoviruses. Talati said that thirty-five percent of Mannheim’s employees whose positions were terminated.

In June, Cox Automotive terminates around 275 positions After over 12,500 employees were unconscious in the spring. Many of the company’s bogus employees worked for Mannheim.

Auction unit Has started to retake the transaction bid On many sites.

Cox Automotive responded to coronovirus – which required several US dealership showrooms to close under state orders Reduction in membership fees for retail products, And it introduced new virtual features to its Autotrader shopping brand. But Cox is facing considerable economic losses from the epidemic, with a 25 percent decline in revenue this year, the company said.

Cox Automotive president Sandy Schwartz said in June that the company was outperforming that target but the final impact would depend on the virus and its toll on the economy. The company, which employs about 34,000 people across all brands, generates annual revenues of more than $ 7 billion.

The company plans to revolve around this call strategy. “way forward,” Which includes an emphasis on digital services and data insights.

on Tuesday, Schwartz said he would play a new role within the Cox Enterprises organization, Leads the investment of the Cox family as CEO of the Cox Family Office. Steve Rauley, executive vice president of the Cox Business Commercial Unit, will take over as president of Cox Automotive from Monday. Schwartz will continue as CEO of Cox Automotive, until a leadership change is worked out.

Cox Automotive said on Tuesday that it had reinstated executive pay that was cut for eight weeks during the epidemic.



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