RICHMOND, Va. β Goochland-based used car company CarMax announced it will cut 350 jobs nationwide this week, following Amazon's decision to eliminate more than 10,000 positions. These cuts come alongside reductions in federal government employment.
Bob McNab, who heads the economics department at Old Dominion University, said the trend extends beyond individual companies.
"We've seen nationwide and in Virginia a rising tide of layoffs even among tech companies who are doing well in the stock market, but are trimming payroll to maintain profitability and beat earnings expectations," McNab said.
Healthcare and insurance providers are also beginning to restructure in anticipation of changes related to the One Big Beautiful Bill.
"We've now seen increased layoff warnings for healthcare, health insurance and social assistance companies," McNab said.
McNab said unemployment claims have been higher every week in 2025 compared to 2024 in Virginia. However, he noted it's difficult to assess the current situation accurately because the federal office that collects employment data is closed due to the ongoing federal government shutdown.
"The quality of data we have is stale and getting more stale," he said.
The extended government shutdown could have a larger impact on Virginia's economy the longer it continues.
"Right now we believe it is continuing to slow and becoming a more challenging environment," he said.
Despite concerns about artificial intelligence replacing workers, McNab said AI hasn't yet displaced humans in large numbers. He warned that an AI market correction could actually hurt the economy.
"When those earnings don't materialize because AI will take time to reach its promise, billions upon billions of dollars that people have put into AI stock will vanish in a correction," he said.
McNab said workers who lose their jobs are finding it increasingly difficult to secure positions with similar pay.
"It is difficult to find a comparable job across Virginia," he said.
Dr. Shayna Cook, Chief People Officer for Dominion Payroll, which processes payroll for more than 150,000 employees across the country, described the current period as stabilization after several years of intense growth and hiring.
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