For nearly a decade, Cox Automotive has been gobbling up competitors, creating a gigantic — and complex — web of businesses and brands, with 33,000 employees interacting with dealers at every level. The underlying promise is a one-stop shop big enough to serve a dealer's every need.
But bigger is better only if it adds value and efficiency for dealers. That means Cox must move quickly to eliminate overlap and inefficiency within the colossus it has created.
An internal memo obtained by Automotive News alerted Cox employees this month that job cuts are looming to help contain expenses that are growing faster than revenue. These cuts will be painful for those affected, but they are necessary if Cox is to deliver on its promise to dealers.