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KAR Global swings to loss, cuts jobs in Q2

(photo courtesy of KAR Global)

CARMEL, Ind. (Inside INdiana Business) — Carmel-based KAR Global (NYSE: KAR) is reporting a second quarter net loss of $32.3 million, compared to net income of $55.6 million during the same period last year. The company says it made a number of proactive steps during the quarter to offset the losses resulting from the COVID-19 pandemic, including cutting 3,000 employees from its global workforce.

KAR says it also furloughed about 11,000 employees in April because of the pandemic, though about 5,000 have since returned to work.

As part of its efforts to save money during the pandemic, some of the company’s top leadership elected to forgo 100% or 50% of their base salaries.

“The extent to which the COVID-19 outbreak impacts our business, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume,” the company said in a news release. “Even after the COVID-19 outbreak has subsided, we may continue to experience materially adverse impacts to our business as a result of its global economic impact, including any economic downturn or recession that has occurred or may occur in the future.”

You can connect to the full earnings report by clicking here.