Cox Automotive to Slash 950 Jobs
One of the largest digital networks of automotive e-commerce, Cox Automotive, Inc., has announced that it is on track to cut as many 950 jobs as part of its ongoing cost-cutting efforts.
The Atlanta, Georgia-based company is consolidating its business following a flurry of acquisitions. A company spokesperson has confirmed that the layoffs will not target a particular division, job function, or geographic location. The layoffs will be spread across the entire business.
The job cuts will slash Cox Automotive’s global workforce by nearly three percent. However, it has become obvious that the company’s Atlanta-based workforce will face the brunt of this restructuring initiative.
According to Cox, nearly 400 jobs will be eliminated at Cox-owned Autotrader.com—the largest online marketplace and hub for automotive classifieds in North America. Atlanta is where Autotrader is headquartered and employs most of its workforce.
As of now, Cox Automotive employs about 3,740 employees in Georgia—the majority of whom are located within Atlanta.
The mass layoffs are happening within two years after Cox acquired auto dealer software company DealerTrack Holdings, Inc., which supposedly made the company a leader in online automotive solutions.
During the same period, Cox made numerous other acquisitions. The acquisition spree ended up inflating its costs while its revenues started lagging. The cost-cutting efforts are now being undertaken to pursue profitability.
The parent company of Cox Automotive, Cox Enterprises, which is one of the largest private companies in the world, is also in the process of reorganizing itself into a leaner company. Cox Enterprises is likewise trimming down costs within its media business. Cox Media Group has been scaling back its print business and shifting its focus towards the digital side of its business.
The job cuts at Cox Automotive will be taking place through the end of September. Affected employees will be receiving severance packages from the company.
According to old statistics mentioned on Cox Automotive’s web site, the company employed a workforce of 60,000 employees. However, The Atlanta Journal-Constitution—a news outlet owned by Cox Enterprises—reports that Cox Automotive currently employs about 35,000 employees worldwide, implying that the company has already shed thousands of employees.
The latest announcement follows an industry-wide decline in auto sales. America’s largest automakers, General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), and Fiat Chrysler Automobiles NV (NYSE:FCAU) have all reported a decline in sales this year and have been scaling back operations to meet the lowered demand. This has triggered thousands of layoffs in the automobile sector this year.
“Cox Automotive to cut 950 jobs worldwide,” The Atlanta Journal-Constitution, August 11, 2017.
“Cox Automotive cuts 950 jobs, 3 percent of workforce,” Atlanta Business Chronicle, August 11, 2017.