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Shipping company Maersk to slash 10,000 jobs

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Shipping company Maersk to slash 10,000 jobs
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.”

COPENHAGEN, Denmark — Maersk, the world’s biggest shipping company, said Friday that 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.

The announcement was made as Copenhagen-based Maersk presented its quarterly report, which listed profits before taxes at $691 million, down from $9.1 billion for the same period last year. The report cited “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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The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. The Trucker Media Group is subscriber of The Associated Press has been granted the license to use this content on TheTrucker.com and The Trucker newspaper in accordance with its Content License Agreement with The Associated Press.
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