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(Reuters) – On Friday, Berkshire Hathaway disclosed a reduction of over 4,000 jobs in the past year, despite the company, led by Warren Buffett, nearing a record high in annual operating profits.
According to a regulatory report, Berkshire’s various subsidiary businesses now employ approximately 392,000 individuals, a decline from the 396,440 noted in their latest annual report released in February.
The report did not specify which branches have experienced job reductions or increases. Some of the larger employers under the Berkshire umbrella include BNSF railroad, Geico insurance, Marmon group, and the Pilot truck stop chain.
A request for comments from Buffett’s assistant went unanswered.
Berkshire Hathaway is known for its strategy of acquiring robust companies for long-term ownership. However, the conglomerate is also willing to make workforce adjustments in response to evolving markets and business needs.
For instance, Geico announced a significant job reduction of 7,700 positions in 2023 due to ongoing underwriting losses. Similarly, Precision Castparts cut approximately 13,400 jobs in 2020 as demand for its aerospace components plummeted amid the COVID-19 pandemic.
In a more recent development, Pilot decided to close its international oil trading division, resulting in the layoff of most of its leadership team, as the company seeks to concentrate on its truck stop and service station operations.
Berkshire Hathaway’s financial performance has been noteworthy, with a reported operating profit of $37.35 billion for 2023, followed by $32.91 billion in the first three quarters of 2024. The company is anticipated to release its complete financial results for 2024 in late February.
At 94 years old, Buffett has overseen Berkshire Hathaway since 1965. The company, which operates with a decentralized structure, allows subsidiary management to run daily operations independently of Buffett’s direct involvement.
(Reporting by Jonathan Stempel in New York; Editing by Bill Berkrot)
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