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Maersk. Layoffs – several thousand employees will lose their jobs, Maersk explains

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Maersk will eliminate a total of 10,000 jobs due to weakening global trade. As a result, the number of people employed in the Danish company is expected to fall below 100,000. Shares of one of the world’s largest container operators fell sharply during Friday’s trading on the Copenhagen Stock Exchange.

The AP Moller-Maersk shipping group reported on Friday a sharp decline in profit and revenue in the third quarter of 2023. – Since the summer, we have been observing excess production capacity in most regions, which is causing price declines – said Vincent Clerc, CEO of the Danish giant, in a recording published on X (formerly Twitter).

Reuters recalled that the company had already warned in August of a sharper decline in global demand for maritime container transport this year due to the economic slowdown. Clerc, in an interview with Bloomberg TV, said he expected the economic environment to remain under pressure for the next two to three years.

Maersk cuts employment

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Maersk also announced a plan to reduce employment. The reason is lower freight rates, i.e. the prices of cargo transport, and greater competition in sea transport. The layoffs are to cover 9%. employed.

The number of employees is expected to fall below 100,000, compared to 110,000 in January 2023. In this way, the company wants to maintain profitability. According to Vincent Clerc, approximately 6.5 thousand people have been dismissed since the beginning of the year. people. The company plans to eliminate another 3.5 thousand jobs in the coming weeks. jobs.

According to Friday’s announcement, Maersk expects the layoffs to save the company $600 million next year.

Investors reacted negatively to Friday’s information. The giant’s shares, listed on the Copenhagen Stock Exchange, fell by over 18 percent after 1 p.m. Ultimately, they ended Friday’s trading with a decline of 16.93%.

Main photo source: Sheila Fitzgerald/Shutterstock

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