Hendrick Automotive Group Chairman Rick Hendrick avoided layoffs during the 2020 economic shutdown by paying his entire workforce 80% of their salaries, a decision that created a lasting culture of loyalty across his racing and automotive operations.
At the time, the company employed over 10,000 people across 95 dealerships in 13 states, generating roughly $10 billion in revenue and selling 219,000 vehicles.
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Hendrick explained that the decision came after California initiated corporate closures, forcing businesses nationwide to cut costs during a period when 20 million American jobs disappeared in April alone.
“Actually, it was a Friday night and I went home and Linda and I were talking and it happened first in California.
They shut down California first and I said, ‘I just cannot think of laying people off. I’m going to pay them as long as I can.’
So, we paid everybody 80% and we kept everybody together. Didn’t lay anybody off,” Hendrick said on the Cars and Culture with Jason Stein podcast.
The executive admitted that maintaining the massive payroll through months of uncertainty caused personal stress despite his billionaire status.
“I had some sleepless nights, I won’t lie,” Hendrick told Forbes. “But we kept our people working and had one of our best years ever.”
Employees still express gratitude during site visits. “And to this day, when I walk through the dealership, I have teammates that say, ‘Thank you.
