Warren Buffett’s Borsheims Cuts Jobs For The First Time

For the first time in its over 100 year history the Borsheims jewelry store at Omaha cut 13 jobs. It reduced 4.6% of its workers. It now has 267 workers.

Borsheims President and CEO, Susan Jacques said” The loss of our staff members is devastating. This is the absolute last thing we wanted to do. We had to make these decisions, because we have to remain profitable for our shareholders despite challenging times”

In an effort to retain jobs Borsheims had implemented numerous cost cutting measures since Nov 2008.  Some of the cost cutting measures include a freeze in hiring, termination of all incentives and bonuses, reduction of charitable donations, reduction in marketing and advertising budgets.

The company is owned by Buffetts Berkshire Hathaway. This goes a long way to show that even jewelry stores backed by multibillion dollar company’s can be affected by a severe economic downturn.

According to Warren Buffet, CEO of Berkshire Hathaway Inc, the retail sector of the company has been hit particularly hard and the retail sector will continue to suffer because the consumers wont spend a lot over the next few years.

Berkshire Hathaway’s retail business owns three jewelry firms, Borsheims, Helzberg diamonds and Ben Bridge. Other retail businesses of Berkshire hathaway include four home furnshing businesses and See’s Candies.

The Borsheims jewelry store was founded in the late 1800’s by Louis Borsheim

External Link- Omaha. COM

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