Logistics giant Maersk to lay off another 3,500 employees

Logistics giant Maersk stated that it plans to "intensify" cost-saving measures to maintain its financial performance as the company faces a new normal consisting of stagnant demand, low freight rates, and inflationary pressure.

"ANOTHER 3,500 PEOPLE TO BE LAID OFF"

In this context, it was reported that the company plans to reduce its workforce from 110,000 to under 100,000, which is expected to provide annual savings of 600 million dollars. The statement noted that 6,500 people have been laid off this year, reducing the number of employees from 110,000 to 103,500 as of early 2023, and that an additional 2,500 people will be laid off in the coming months, with another 1,000 to follow in 2024.

"WE HAVE ACCELERATED MEASURES"

The statement included the following remarks from Maersk CEO Vincent Clerc:

"The container shipping industry is facing a new normal with weak demand, prices returning to historical levels, and inflationary pressure on costs. Given the challenging times ahead, we have accelerated various cost and cash containment measures to safeguard our financial performance."

News Source: AA