Maersk: 9% job cuts due to poor market conditions

Maersk: 9% job cuts due to poor market conditions
© Maersk

Company's revenue decreased significantly to USD 12.1 billion from USD 22.8 billion in Q3 2022, with an EBIT margin of 4.4%, impacted by lower freight rates and lower volumes.

Maersk has implemented rigorous cost containment measures during the year to effectively mitigate the impact of challenging market conditions, including a reduction in headcount from 110,000 at the beginning of 2023 to around 103,500 today.

As a result of the deteriorating price outlook in Ocean, Maersk is intensifying these measures and introducing plans to reduce the workforce by a further 3,500 positions, with up to 2,500 to be implemented in the coming months and the remainder to be phased in over the course of 2024. This will reduce the global workforce to below 100,000.

"Our industry is facing a new normal with subdued demand, prices back in line with historical levels and inflationary pressure on our cost base. Since the summer, we have seen overcapacity across most regions triggering price drops and no noticeable uptick in ship recycling or idling," says Vincent Clerc, CEO of Maerks, explaining the financial impact of the market situation.

"Given the challenging times ahead, we accelerated several cost and cash containment measures to safeguard our financial performance. While continuously streamlining our organisation and operations, we remain dedicated to our strategy of fulfilling our customers’ diversified supply chain needs while pursuing growth opportunities across our Terminals business and Logistic & Services," he adds.

The total expected restructuring charge is now expected to be USD 350 million, up from the USD 150 million announced in February.

USD million 2023 Q3 2022 Q3
Ocean 7,897 18,018
Logistics & Services 3,517 4,182
Terminals 999 1,117
Towage & Maritime Services 483 591
Unallocated activities, eliminations... -767 -1,141
A.P. Moller - Maersk consolidated 12,129 22,767
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