Container shipping giant cuts jobs to reduce costs.
Business Day reports that the world’s biggest container shipping line Maersk announced plans to cut 2,000 jobs as it streamlines to cut costs. The Danish firm said the redundancies would be the result of a major reorganisation announced last month, in which it seeks to integrate its seaborne container and inland logistics businesses.
Maersk, which handles about one in five containers shipped worldwide, said that though cargo volumes are still lower than 2019, it has recovered faster than expected after falling sharply at the height of the Covid-19 pandemic. Volumes in Maersk’s ocean-division declined by about 3% in the third quarter compared to the same period last year, above an expected mid-single-digit contraction, the company said.
CEO Søren Skou said in a statement, “AP Moller-Maersk is on track to deliver a strong third quarter with solid earnings growth across all our businesses, in ocean and logistics and services. Volumes have rebounded faster than expected, our costs have remained well under control, and freight rates have increased due to strong demand.”
Maersk currently has about 80,000 employees and expects restructuring costs of about $100 million in the third quarter due to the cutbacks.