Pandemic brings woes to Warren Buffett’s conglomerate
WASHINGTON (US) – Berkshire Hathaway Inc made public a $9.8 billion writedown and 10,000 job cuts at its Precision Castparts aircraft and industrial parts business on Saturday. This comes as the pandemic has brought much trouble for Warren Buffett’s conglomerate.
In 2016, Berkshire took over Precision for $32.1 billion, its largest acquisition so far. It said that the pandemic caused airlines to slash orders for aircraft and that triggered less demand, causing revenue to drop by one-third.
Berkshire also said results may continue to suffer as the unit undertakes an “aggressive restructuring” to reduce operations to low demand. precision had 33,417 employees at the end of 2019. It has since cut 30% of its workforce.
According to Berkshire, the coronavirus crisis has caused “relatively minor to severe” damage to its more than 90 operating businesses, including BNSF railroad, Geico auto insurer and See’s candies.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field