World shipping giant cuts jobs

Maersk is cutting more jobs in response to ‘worsening’ conditions in the global shipping market.

The Copenhagen-based shipper – the world’s second largest – made the announcement at the start of November 2023 as it released its third-quarter results, which feature large decreases in profits and revenues against the previous year.

Having cut 6,500 positions earlier this year, it is now cutting a further 3,500, a total reduction of its 110,000-strong global workforce by nine per cent.

Vincent Clerc, CEO of A.P. Moller-Maersk, said: ‘Given the challenging times ahead, we accelerated several cost and cash containment measures. We are in a very uncertain trading environment with significant further downside risk potential — one that could stay with us for quite a while.’

He added that he expects the reduction to mark a permanent recalibration of the way the company staffs its business. The company is now spending US$350m on restructuring (up from the $150m guidance announced in February) and forecasts $600m in cost savings as a result of the job cuts.

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