SpotlightAugust2017

By Jamie Barrie I t seems that the auto industry is always in the news these days, whether it is NAFTA negotiations, recalls or in this case layoffs. Cox Automotive has confirmed that the company plans to lay off 950 employees, which is about three per cent of its full-time work force, with another 225 employees worldwide opting to retire early through the company’s voluntary retirement program as part of an ongoing effort to trim costs. Cox warned of looming cuts in a company memo this past June that outlined its intentions to trim labor costs, reduce travel and entertainment spending and eliminate duplicative services and excess bureaucracy along with other expenses. Cox, who has been hot on the acquisition trail over the last few years, is seeing its ROI slower than expected as expenses outpaced revenues by $100 million in its 2017 budget according to the company. “We’ve taken great care to ensure that everything we do now give us the best chance to succeed well into the future,” Cox said, “We are building a stronger Cox Automotive so that we can fulfill the dream of a connected system of solutions that help our clients reach for the next frontier.” Which tell us that efforts for Cox to create a stronger digital retailing experience, bringing a more transactional atmo- sphere to dealership websites which will allow consumers to complete more of the buying process of their next vehicle online are still moving forward with no mention of plans to change the companies direction from this goal of offered increase systems solutions for their clients.

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AUGUST 2017 • SPOTLIGHT ON BUSINESS MAGAZINE

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