Danish container shipping company Maersk has announced it will cut more than 10,000 jobs after the financial downturn in the third quarter of 2023, when it saw its revenue and earnings shrink.
The company said it has imposed "rigorous cost containment measures" during the year to cushion the impact of the challenging market conditions, including headcount reduction from 110,000 in early 2023 to around 103,500 today.
Maersk added, "Given the worsening price outlook in Ocean, Maersk is intensifying those measures and today introduce plans to further decrease the workforce by 3,500 positions, with up to 2,500 to be carried out in the coming months and the remaining to extend into 2024."
This is expected to reduce the global workforce of the Copenhagen-based ocean carrier to below 100,000 positions. Accordingly, the total expected restructuring charge is now expected at US$350 million, up from US$150 million announced in February.
"The adjustment of the workforce complements the decisive actions taken on cost containment throughout the year," noted Maersk in its statement.
Maersk aims to reduce selling, general and administrative expenses (SG&A) cost by US$600 million for 2024. In addition, CAPEX spend has been adjusted downward for 2023 and 2024 and further measures are under review, including the continuation of the share buyback programme into 2024, according to the company's statement.
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