Maersk to slash 3,500 jobs as revenue plunges

COPENHAGEN

Danish shipping giant Maersk said on Nov. 3 that it would slash 3,500 jobs as net profit and revenue plunged in the third quarter due to a sharp fall in freight rates.

Maersk's net profit nosedived to $521 million between July and September against $8.9 billion a year earlier.

"Our industry is facing a new normal with subdued demand, prices back in line with historical levels and inflationary pressure on our cost base," CEO Vincent Clerc said.

The company had already begun to cut costs, reducing staff levels from 110,000 at the start of 2023 "to around 103,500 today."

"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," the company said.

"This will reduce the global workforce to below 100,000 positions," it added.

Revenue for the period fell to $12.1 billion, compared to $22.8 billion a year earlier, especially in its shipping business.

"Ocean results have reached break-even levels due to continuing challenging market conditions resulting in substantially lower freight rates compared to the abnormally high rates in 2022," the company said in its quarterly earnings report.