Maersk: job cuts + shutdowns

Shipping giant Maersk’s third quarter revenue nearly halved, but also layoffs!

Recently, Maersk Group confirmed that the company is currently in the midst of a new round of major layoffs, the shipping giant’s headquarters in Copenhagen, Denmark, about 200 people were recently laid off. Hans Ubbe Ebbesen, head of Maersk’s global employer brand, is said to be one of the employees being laid off. In addition, Maersk also announced that in the coming weeks, there will be another 2,500 layoffs worldwide.

Maersk is executing a cost control plan announced by the shipping group in early November. Earlier this month, Maersk announced at the same time as the release of the third quarter financial results that it will reduce the number of employees from 110,000 at the beginning of 2023 to about 103,500 currently. But it cut at least 10,000 jobs, bringing its total workforce below 100,000.

Maersk CEO Vincent Clerc said: “Low demand, a return to historic rates and inflationary pressure on costs have become the new normal for the industry. Since the summer, overcapacity on most global routes has caused freight rates to fall, but there has been no significant increase in ship dismantling or idling. “To better meet the challenges ahead, Maersk has accelerated a number of cost and cash control measures to safeguard financial performance.” “He said.

Maersk has cut 6,500 jobs since the beginning of the year after failing to fill vacancies. Maersk said it plans to cut a further 3,500 jobs, of which 2,500 will be affected by the end of 2023 and the rest by 2024.

Maersk’s cost-cutting program has had a broad impact on the company, particularly in the logistics business and in India and China, where Maersk has a large workforce.