Subsidiaries of Warren Buffett's Berkshire Hathaway are cutting back on jobs and costs, and there's more to come.
In the company's 10-K annual report filed with the SEC, Berkshire says its "operating companies have taken and will continue to take cost reduction actions in response to the current economic situation, including curtailing production, reducing capital expenditures, closing facilities and reducing employment to partially compensate for the declines in demand for goods and services."
According to Reuters' calculations, the "deepest cuts came in businesses tied closely to the housing market." The manufacturing housing unit Clayton Homes cut jobs by 16 percent (2,290 jobs), ending the year with 11,998 employees. Shaw Industries, which makes carpets, eliminated 1,900 jobs, a 6.2 percent reduction. It finished 2008 with 28,974 workers.
Overall, Berkshire's employment increased by 5.7 percent last year, reaching 246,083. That, however, is the result of Berkshire acquisition of Marmon Holdings, which has 18,000 workers.