Coronavirus: AutoNation furloughs 7,000 workers, cuts top executives’ pay

FORT LAUDERDALE, Fla. — AutoNation is furloughing 7,000 employees, cutting the pay of its top executives and imposing a hiring freeze as the auto dealer giant is feeling the economic pinch caused by the coronavirus.

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AutoNation, based out of Fort Lauderdale, Florida, disclosed its decisions in a filing with the Security and Exchange Commission, noting that its year-over-year sales had fallen by 50%, the Sun-Sentinel reported.

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The report, filed Thursday, noted that AutoNation cut advertising spending by nearly 50% for the second quarter of 2020. The company also reduced discretionary spending and postponed more than $50 million in capital spending during the second quarter, scoring to the filing.

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"The COVID-19 pandemic has adversely impacted, and is expected to continue to adversely impact, AutoNation’s operations,” the company said in the filing.

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“Markets from which we derive approximately 95% of our total revenue are currently under extensive ‘shelter in place’ or ‘stay-at-home’ orders from federal, state, and local governments, which significantly restrict our business operations, in particular our sales activities,” AutoNation wrote in its filing.

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Company CEO Cheryl Miller and Chairman Mike Jackson will have their annual salaries cut by 50%, the Sun-Sentinel reported. Executive vice presidents will have their salaries cut by 35%, while senior vice presidents and regional vice presidents will see their paychecks slashed by 30%, according to the filing. Other executives will take a 20% cut.

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