Shipping company Maersk to slash 10,000 jobs, citing the difficult container trade environment

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Maersk, the world’s biggest shipping company, says it plans to eliminate 10,000 jobs due to what it described as a challenging environment for container trade and logistics services. The company said the move would result in savings of $600 million in 2024.

FILE - Containers are seen on the worlds first methanol-enabled container vessel before the namegiving ceremony in Copenhagen, Denmark, Thursday, Sept 14, 2023. On Friday, Nov. 3, 2023 Maersk presented its quarterly report with profits before taxes at $691 million, down from $9.1 billion for the same period last year, citing “challenging market conditions resulting in substantially lower freight rates compared to the abnormally high rates in 2022.

A.P. Moller-Maersk CEO Vincent Clerc said the company will continue to streamline its organization and operations. ”Our industry is facing a new normal with subdued demand, prices back in line with historical levels and inflationary pressure on our cost base,” Clerc said. “Given the challenging times ahead, we accelerated several cost- and cash- containment measures to safeguard our financial performance.”

The company’s revenue for Q3 was $12.1 billion in 2023 compared to $22.8 billion for the same period in 2022. The company said it now expected annual global container volume growth in the range of -2% to -0.5% compared to -4% to -1% previously.

 

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