This article was last updated on November 3, 2023
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Maersk to cut thousands of jobs as part of cost-saving measures
Job cuts to reach up to 9 percent globally
The world’s largest container shipping company, Maersk, is planning to cut a total of 10,000 jobs this year. Initially, the company had announced a loss of 6,500 jobs, but now the figure is increasing further. This reduction in workforce accounts for up to 9 percent of the total number of employees worldwide.
Although Maersk has not disclosed the exact number of jobs affected in the Netherlands, the company’s annual reports indicate an estimated 1,500 employees being employed in the country over the past two years.
Cost-saving target of $600 million
Maersk aims to achieve substantial cost savings through these job cuts, amounting to approximately $600 million. The company is currently facing challenges such as falling freight prices and increased competition, which have impacted its profitability.
The declining demand for container transport is also a contributing factor. Maersk had previously anticipated a decrease in global container volume by 2023. Factors such as high inflation leading to decreased consumer spending, as well as manufacturers depleting existing stockpiles rather than ordering new ones, have resulted in reduced transportation of goods from Asia to Europe and the United States.
Prior success and current market challenges
Two years ago, Maersk achieved record profits, benefiting from market disruptions caused by the COVID-19 pandemic. The global trade revival and unprecedented price increases in container transport played a significant role in the company’s success. However, the current market conditions, including global supply chain disruptions and economic uncertainties, have posed significant challenges for the shipping industry.
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