Maersk announces 10,000 job cuts amid sliding revenue

Posted on November 13, 2023   |  

Maersk is reducing its workforce by over 10,000 employees due to a drop in earnings during the third quarter.

They plan to have 9% fewer employees by the end of the next year, which means going from 110,000 workers to under 100,000 in 2024.

This move is aimed at saving $600 million in 2024 because Maersk faced a significant decline in revenue during the third quarter. 

This decline was mainly due to increased competition in the shipping industry, leading to lower prices.

Maersk's profits saw a substantial decrease, falling by 94% to $521 million, primarily as a result of these financial challenges.

Maersk's main source of income, the Ocean segment saw a $27 million loss during Q3. 

This is a significant contrast to the $8.7 billion profit they made during the same period in 2022. 

The economic downturn and intense price competition in the sector have led to a 58% drop in Maersk's shipping rates.