Maersk to shrink workforce by 10%

The Danish company – owner of the world’s second largest fleet – said it had already started cutting staff but was planning on ‘intensifying’ cost-saving measures in response to worsening price forecasts.

The chief executive, Vincent Clerc, said the job cuts were part of efforts to adjust to a ‘new normal’, after shipping companies benefited from inflated prices during the pandemic.

“Our industry is facing a new normal with subdued demand, prices back in line with historical levels and inflationary pressure on our cost base,” he said. “Since the summer, we have seen overcapacity across most regions triggering price drops and no noticeable uptick in ship recycling or idling.

“Given the challenging times ahead, we accelerated several cost and cash containment measures to safeguard our financial performance.”

Maersk has revealed that it had already axed 6,500 jobs this year, taking its headcount from 110,000 in early 2023 to 103,500 today.

It said it would increase those efforts, cutting another 2,500 jobs in the coming months, and a further 1,000 in 2024, in order to save at least US$600,000 (£563,350) in annual costs.

Overall, Maersk said it hoped to shrink its global workforce by 10% to fewer than 100,000 positions.