02/03/2026

BIZ & FINANCE MONDAY | MAR 2, 2026

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Berkshire’s new CEO seeks to reassure shareholders

SAN FRANCISCO: Jack Dorsey is not the first CEO to say artificial intelligence will transform work. He may be among the first to act as if it already has – and to say so openly. “Intelligence tools have changed what it means to build and run a company. We’re already seeing it internally. A significantly smaller team using the tools can do more and do it better,” the Block CEO and co founder said in a statement last week. “I don’t think we’re early to this realisation. I think most companies are late,” he added as he laid out plans to cut over 4,000 jobs, nearly half the company’s workforce, as part of an overhaul to embed AI across the fintech’s operations. Block shares rose sharply on Friday, underscoring how markets are increasingly rewarding companies that present AI not as an experiment but as a driver of structural change. Dorsey also delivered a blunt warning to peers: most companies are behind the AI curve and will reach the same conclusion within a year. “I’d rather get there honestly and on our own terms than be forced into it reactively.” Until now, most executives have resisted those kinds of sweeping conclusions even as their firms pour billions into the technology. The comments are likely to sharpen a growing debate among executives, economists, investors and policymakers: is AI primarily a tool that helps workers do more – or one that enables companies to do the same with far fewer people? AI-linked layoffs have been rising worldwide. According to a Reuters tally, companies have announced more than 61,000 job cuts tied to AI, including Amazon, Pinterest and Australia’s Wisetech since November. But Block is among the highest profile firms to cite AI explicitly as the primary driver of its reductions, rather than a secondary efficiency gain. Some investors argue that automation-related cuts are partly correcting for years of overhiring. “AI is the new scapegoat,”said Brian Jacobsen, chief economic strategist at Annex Wealth Management. Still, markets are increasingly uneasy about AI’s potential to upend jobs and profits amid an uncertain global economic backdrop. A report by Citrini Research outlined a 2028 scenario in which unemployment rises to 10.2%, driven by rapid displacement of workers in software, logistics and delivery roles. Evidence is emerging that firms are beginning to see returns on their investment. Morgan Stanley analysts said there has been a steady rise in the number of firms reporting quantifiable benefits from AI adoption, based on an analysis of more than 10,000 earnings calls and conference transcripts. Some 21% of S&P 500 firms mentioned at least one measurable benefit, up from 15% in the third quarter and 10% in the final quarter of 2024. – Reuters Block CEO’s AI warning sharpens debate over jobs and profits

The letter also signalled that Abel would not upend Buffett’s 60 years of work transforming Berkshire from a failing textile company into a more than US$1 trillion conglomerate that owns car insurer Geico, BNSF railroad and dozens of other insurance, manufacturing, energy and retail businesses. “If there were any doubts about whether Greg was the right individual to take the reins, the letter should dispel them,” said Dan Hanson, who oversees more than US$6 billion as head of the quality equity team at Neuberger Berman. Berkshire also reported declining profit, after taking writedowns for its approximately 27% stakes in both Kraft Heinz and oil company Occidental Petroleum. Fourth-quarter operating profit fell 30% to US$10.2 billion as income from insurance operations such as Geico declined. Net income fell 3% to US$19.2 billion, reflecting a US$4.5 billion writedown for Occidental, despite gains from equity holdings led by Apple and American Express. For all of 2025, operating profit fell 6% to US$44.49 billion, while net

income fell 25% to US$66.97 billion. Buffett had long urged investors to ignore fluctuations in Berkshire’s net income, which reflect accounting rules for equity investments. Full-year revenue was essentially unchanged at US$371.44 billion, and Seifert said Abel “teed up an expectation that reinsurance and commercial insurance growth may be nonexistent” in 2026. One of Berkshire’s best-known businesses, Fruit of the Loom, shed 6,000 jobs last year as revenue fell, Berkshire said. Abel said Berkshire’s culture and values will continue “in perpetuity”, and signalled no changes in its decentralised structure in which its dozens of businesses operate largely without interference from the top. He also signalled a willingness to stick around, suggesting that in 20 years he will have had “just a fraction of the tenure that Warren had”. Abel pledged to invest in durable, well-managed businesses that Berkshire understands and “avoid businesses that undermine the fabric of society or could jeopardise Berkshire’s reputation”. He did not elaborate, but Seifert said he could have been referring to artificial intelligence. – Reuters

o Abel vows to maintain its ‘fortress-like’ balance sheet, uphold Buffett’s values

NEW YORK: Berkshire Hathaway’s new chief executive Greg Abel moved to put his stamp on the conglomerate with his first annual letter to shareholders on Saturday, pledging to maintain its “fortress-like” balance sheet and uphold the values of his predecessor and mentor Warren Buffett. Abel, 63, said he would not rush to deploy Berkshire’s near-record US$373.3 billion cash stake, though he said it gave the company plenty of “dry powder” and that he had no plans to begin paying dividends, which Buffett also opposed. Berkshire has not repurchased its own stock since the spring of 2024. “I recognise how you want us to succeed together, and to do so in the right way,” Abel wrote in an 18-page, single-spaced letter. “My role is to ensure our liquidity levels and capital deployment remain intentional and deliberate.” Abel also paid homage to Buffett, NEW YORK: US media conglomerate Paramount Skydance announced it will acquire Warner Bros Discovery in a deal valuing the combined company at US$110 billion, after beating Netflix in a bruising bidding war. The agreement ends a five-month saga and creates an entertainment behemoth whose impact on a struggling media landscape – and connections to Donald Trump’s White House – will be closely scrutinised. The merged entity will include CNN, CBS, HBO and Nickelodeon as well as some of Hollywood’s most valuable franchises, including Harry Potter , Game of Thrones , the DC Universe, Mission Impossible and SpongeBob SquarePants. Under the terms of the agreement, Paramount will pay US$31 per share in cash for all outstanding Warner Bros shares, implying an equity value of US$81 billion – and US$110 billion when including the mountain of debt Paramount will take on. The transaction has been unanimously approved by both companies’ boards and is expected to close in the third quarter of 2026, the companies said. “Our pursuit of Warner Bros Discovery has been guided by a clear purpose: to honour the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company,” said Paramount CEO David Ellison. The deal closes a battle that ended on Thursday when Netflix walked away, unwilling to match Paramount’s latest offer. Wall Street praised the deal, with shares of Paramount up more than

95, who remains chairman and goes to Berkshire’s offices five days a week, calling him a “remarkable” CEO. “Warren Buffett is arguably the greatest investor of all time, with generations benefiting from his investment acumen,” Abel wrote. “To invest in Berkshire has long been a vote of trust in our founder – a trust that now rests with Berkshire.” Berkshire shares have significantly underperformed the Standard & Poor’s 500 index since Buffett announced unexpectedly in May he was stepping aside as CEO. Though Abel’s letter lacked Buffett’s writing flair, CFRA Research analyst Cathy Seifert said it might prove reassuring to investors. “He needed to show a degree of continuity, that the Berkshire franchise would continue despite the change in leadership, and it would be business as usual. “In my opinion, he hit the mark.”

Paramount acquires Warner Bros in US$110b merger

Visitors take photos in front of the Wonder Woman statue at Warner Bros Studio in Burbank, California. – AFPPIC

embark on a painful round of cost-cutting to pare down the load. His father, Oracle billionaire Larry Ellison, one of the world’s richest men, largely financed the takeover, offering a financial guarantee that finally persuaded the Warner Bros board. Larry Ellison is also a longtime ally of President Donald Trump. – AFP

integration processes,” said HSBC analyst Mohammed Khallouf. Questions now pivot to the Ellison family, which will control a constellation of media properties spanning the globe – though at the cost of accumulating a pile of debt. If regulators approve the deal, David Ellison is widely expected to

20% on Friday. Simultaneously, Netflix was up nearly 14%, as many investors concluded the fight had not been worth it for the streamer. “Netflix’s withdrawal from the race will leave it free to refocus on its business, while its closest competitors grapple with long and distracting regulatory approval and merger