Maersk to lay off 10,000 people due to decreased demand for services

Danish logistics titan, Maersk, plans to eliminate a total of 10,000 positions in response to an economic downturn that has decreased the demand for its services. The company has taken this step in effort to save this year's financial results.

The British newspaper, The Guardian, reports that Møller-Maersk, one of the world's biggest shipping companies, is gearing up for significant job cuts. It is projected that 10,000 people will be unemployed once the process is completed.

Maersk announced that they had initiated the layoff process at the beginning of the year. However, it now aims to "intensify" these efforts, targeting a reduction in the company's operational costs. This strategic move is intended to safeguard the company's financial outcomes amid a worsening market environment and diminishing interest in logistics services.

Thus far, since January, 6,500 people have already been laid off. Consequently, Maersk's workforce has been reduced from 110,000 to 103,500 individuals.

The company is now striving to further reduce its workforce. It plans to dismiss an additional 2,500 employees by the end of the year, and a further 1,000 by 2024. It is estimated this will save at least $600,000 annually for the company.

In summary, Maersk is on track to cut around 10% of its global employees, bringing the total workforce below 100,000. Vincent Clerc, the company's CEO, has articulated that these layoffs are a critical adjustment to the "new normal" after shipping companies benefited from appreciably higher prices during the coronavirus pandemic, which disrupted supply chains and switched many companies to maritime transport.

“Our industry faces a new normal of subdued demand, returning pricing to historical levels and inflationary pressure on our cost base”, Vincent Clerc told The Guardian.

The newspaper reached out to the company's press representative for more details about the layoff process, but they declined to comment.