Benjamin Moore Cuts, Outsources IT

Paint manufacturer Benjamin Moore is laying off about half of its IT department — more than 50 people — as it outsources its technology operations to an unnamed India-based vendor, according to the New York Post.

Benjamin Moore Logo“They’re laying them off in waves in the spring, and they’re being forced [now] to train the people that are going to replace them,” a source told the Post. “This is the new culture.”

The move comes as Montvale, N.J.-based Benjamin Moore freezes the pensions of current employees. Benjamin Moore is owned by billionaire Warren Buffett’s holding company Berkshire Hathaway.

Buffett’s 29-year-old financial assistant, Tracy Britt Cool, made the decision to freeze pensions. Buffett installed her last year as chairman of the company. “Tracy is remaking the company into her own image — a kid’s image,” one former executive said. “She’s eliminating all the incentives for company veterans to stay so she can hire a bunch of kids to replace them on the cheap.”

Company insiders acknowledge that the pension plan and in-house IT department were outdated. The Post reports that some “belt-tightening will be necessary to compete against faster-growing rivals like Sherwin-Williams.” Other sources said the cuts come after years of inattention to the company’s tech systems. Benjamin Moore decided to outsource IT after determining that updating its technology would cost $125 million.

Employees were taken aback in October when Buffett told CNBC that Benjamin Moore “is making a lot of money” despite reports of chaos there. “That’s not what they’re telling us come payday,” said one worker.

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8 Responses to “Benjamin Moore Cuts, Outsources IT”

  1. Well I’m in IT and BENJAMIN MOORE don’t have to worry about me buying their products, I’m so sick and tired of this country outsourcing the America livelihood. You call for service, you get someone who can barely speak english, SICK, SICK SICK and unfair to the America people

  2. As stated in the article above, “This is the new culture”. We just went through this, as a major hospitality company outsourced their entire IT department and yes we had to train our replacements also. No consideration for the loyal employees who helped the company get to the top, nothing matters but the money.

  3. I work for a company acquired by Berkshire Hathaway. The company has no 401 contributions, beats employees pay down to bottom , training is not in the plans, and long hours are the rule for the ‘professionals’. I thought the issue was tied to it being a subsidiary, but sounds like the Hathaway vision is one of extracting everything they can from the american worker and then spitting them out. A lot of fancy talk about fairness from Buffet but he ought to start looking at working conditions in his corporations.