Business
Product Recall: Shipping company Maersk to slash 10,000 jobs, citing the difficult container trade environment
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COPENHAGEN: Maersk, the world’s biggest shipping company, said on 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.”
AP Moller-Maersk CEO Vincent Clerc said the company will continue to streamline its organisation 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 per cent compared to -4 to -1 per cent previously.
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.”
AP Moller-Maersk CEO Vincent Clerc said the company will continue to streamline its organisation 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 per cent compared to -4 to -1 per cent previously.
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