At the 2013 Berkshire Hathaway Annual Meeting, Warren Buffett offered a candid take on the corporate buzzword “synergy.” According to Buffett, it’s often just a euphemism for mass layoffs—especially targeting the very employees who built the company’s success.
“They would have all these ideas about synergy,” Buffett said, “and synergy would mean that the people that had helped him build the business over 30 years would all get sacked.” He likened the acquiring companies to Attila the Hun, sweeping in and displacing long-standing employees in the name of efficiency. Buffett made it clear: he had no interest in deals that rewarded cost-cutting at the expense of loyal people.
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© 2025 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.