The largest shipping business in the world, Maersk, announced on Friday that it intends to cut 10,000 jobs as a result of what it called a difficult climate for logistics and container trade.
According to the firm, the change would save $600 million by 2024.
The news was made concurrently with the quarterly report presentation of Copenhagen-based Maersk, which showed profits before taxes decreased to $691 million from $9.1 billion at the same time the previous year. “Difficult market conditions resulting in substantially lower freight rates compared to the abnormally high rates in 2022” were mentioned in the paper.
Vincent Clerc, CEO of A.P. Moller-Maersk, stated that the business will keep streamlining its administration and activities.
“We have a new normal in our industry: lower demand, historical price parity, and inflationary pressure on our cost base,” stated Clerc. “In order to protect our financial performance, we expedited several cost- and cash-containment measures given the challenging times ahead.”
In comparison to $22.8 billion for the same period in 2022, the company’s Q3 revenue in 2023 was $12.1 billion.
As opposed to -4% to -1% earlier, the company stated that it now anticipated yearly global container volume growth in the range of -2% to -0.5%.
