Berkshire Hathaway Trims Workforce, Posts Record Operating Profit
Berkshire Hathaway (BRK-B, BRK-A) announced a workforce reduction of over 4,000 employees in the past year. Despite the layoffs, the conglomerate led by Warren Buffett is projected to achieve a record annual operating profit.
According to a regulatory filing, Berkshire's operating businesses employ approximately 392,000 people, down from 396,440 reported in February. The filing does not specify which units have made job cuts or additions.
Notable Berkshire subsidiaries include BNSF railroad, Geico insurance, Marmon manufacturing, and Pilot truck stops. Buffett's assistant has not yet commented on the job reductions.
Berkshire aims to acquire and hold onto profitable businesses indefinitely. However, it implements job cuts in response to evolving markets or business needs. Geico laid off 7,700 employees in 2023 due to underwriting losses, while Precision Castparts reduced its workforce by 13,400 in 2020 as demand for aircraft parts plummeted during the COVID-19 pandemic.
Recently, Pilot closed its international oil trading division and dismissed most of its leadership, refocusing on truck stops and service stations.
Berkshire reported an operating profit of $37.35 billion in 2023, a record high. In the first nine months of 2024, the company generated $32.91 billion in operating profit. Full-year results for 2024 are expected to be released in late February.
Buffett, 94, has led Berkshire since 1965. The Omaha-based conglomerate is decentralized, with Buffett not directly involved in the daily operations of its subsidiaries.