KAR Global details COVID-19 response plans
CARMEL, Ind. (Inside INdiana Business) — Carmel-based KAR Global (NYSE: KAR) says it is taking a series of proactive steps in the fight against COVID-19. The company says it is “reducing operational costs and preparing to scale staff levels to current demand.”
KAR Global did not provide any specific details on how many employees could be affected by any potential staff reductions.
Among the other initiatives being implemented, the company says members of its executive leadership team will reduce or forgo their salaries while operations are being disrupted by the coronavirus pandemic.
The KAR Global Board of Directors will also forgo its cash compensation during the second quarter of 2020. Additionally, the company is reducing capital expenditures for the rest of the year.
“The coronavirus pandemic continues to impact our company, industry and markets around the globe,” said Jim Hallett, chief executive officer of KAR Global. “Wholesale dealer demand has decreased significantly over the past several weeks, and both the timeline and pace of market recovery remain unpredictable. We believe our balance sheet, including our cash position, is strong, and we are well positioned to sustain our business and navigate the uncertainty for the foreseeable future.”
Hallett will host a business update conference call on Friday to further detail the company’s plans.