Tuesday, December 29, 2009

Warren Buffet Handed Out 21,000 Pink Slips

"Buy American" billionaire, Warren Buffet owns companies that are suffering the pangs of this recession (or actually his ex-employees are suffering the pangs of this recession):
Berkshire Hathaway Inc. reported 21,000 fewer employees than it had at the end of 2008 amid a slump at the firm’s manufacturing and retail units.

Berkshire and its subsidiaries have about 225,000 workers, the Omaha, Nebraska-based company said this week in regulatory filings. That’s 8.6 percent lower than the 246,083 disclosed in the 2008 annual report. Berkshire provided the jobs information in a document tied to its planned $26 billion takeover of railroad Burlington Northern Santa Fe Corp.

Buffett, Berkshire’s chief executive officer, oversees a collection of more than 70 subsidiaries that sell products including Geico car insurance, Fruit of the Loom T-shirts and Dairy Queen ice cream. Profit at the firm’s manufacturing, service and retail businesses plunged by more than half in the first nine months of the year...

NetJets - the luxury air travel unit - 800 job cuts.

Fruit of the Loom announced in March it would lay off 3,000 textile workers in El Salvador because of excess inventory... on Dec. 3 that the company planned to hire back 1,000 workers.
Fruit of the Loom had more than 34,000 workers at the end of 2008, according to Berkshire’s most recent annual report, the largest total among its operating units.
Buffett told shareholders at the firm’s annual meeting in May that he expected more cuts at Berkshire following reductions last year at Clayton Homes Inc., which builds manufactured housing, and brickmaker Acme Building Brands. Berkshire reported its first quarterly loss since 2001 in the first three months of this year. The firm returned to profit in the second and third quarters, helped by an advance in the stock market.
Shaw Industries, Hathaway's carpet and flooring manufacturer, eliminated 600 jobs in March as it closed yarn facilities in Georgia...it plans to cut another 430 jobs in the state. Shaw had about 29,000 workers at the end of 2008.

Berkshire’s Buffalo News, started the year with about 846 employees, and cut approximately 100 production jobs through voluntary attrition.

Jordan’s Furniture eliminated “dozens” of jobs this year in Massachusetts.

Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
- Warren Buffet

Buffett supported Democrat Barack Obama in the race for the White House... it seems he will now enjoy Obama's bruising economic policies as his reward.