A.P. Moller-Maersk plans to cut 10,000 jobs due to worsening market conditions and a significant drop in revenues.
Maersk's shares plunged 9%, having lost 23% of their value over the past 12 months.
The shipping sector is facing overcapacity due to a slowdown in global trade, leading to a decrease in prices.
Global shipping giant, A.P. Moller-Maersk, has announced plans to cut 10,000 jobs due to worsening market conditions and a significant drop in revenues. The company began the year with 110,000 global employees and has already cut 6,500 jobs. The additional layoffs are part of a plan to save the company $600 million in 2024, following a 47% drop in its third-quarter revenues due to heavy price competition in its freight shipping business.
The shipping sector, which experienced a boom during the pandemic, is now facing overcapacity due to a slowdown in global trade. This has led to a decrease in prices, while rising oil and other costs have negatively impacted the company's bottom line. The company's shares plunged 9% on Friday, having lost 23% of their value over the past 12 months.
In an effort to preserve cash, Maersk is considering all options, including slashing capital expenditures and potentially halting share buybacks. The job cuts and other cost-saving measures are seen as a negative indicator for global trade, following the previous year's boom.
The company's shares plunged 9% on Friday, having lost 23% of their value over the past 12 months.
The layoffs are part of a plan to save the company $600 million in 2024, after a 47% drop in its third-quarter revenues due to heavy price competition in its freight shipping business.