Maersk, the world’s largest shipping company, announced on November 2, 2023, that it would be cutting 10,000 jobs in an effort to reduce costs and streamline operations.
Maersk, which transports goods for major retailers such as Nike, said profits had plunged by 92% in its most recent quarterly results. It said “worsening” prices for shipping by sea required further job cuts. The cuts will affect all areas of the company, but will be concentrated in its administrative and support functions.
Maersk CEO Søren Skou said that the decision to cut jobs was “difficult but necessary” to ensure the company’s long-term competitiveness. He said that the shipping industry is facing a number of challenges, including a slowdown in global trade and rising fuel costs.
The job cuts come at a time when Maersk is already facing pressure from investors to improve its profitability. The company’s stock price has fallen by more than 50% in the past year.
The job cuts are likely to have a significant impact on the global shipping industry. Maersk is a major player in the industry, and its decision to cut jobs is likely to lead to other shipping companies following suit. This could lead to higher shipping costs for businesses and consumers.
