Maersk shares slide after shipping line unveils plan to cut at least 10,000 jobs
) slumped on Friday, touching their lowest mark in three years, after the Danish shipping group announced that it would slash nearly a tenth of its workforce following a steep drop in quarterly profit and revenue.
In a statement, the company said it would now aim to reduce its workforce to"below 100,000, from 110,000 in January 2023" as it intensifies a push to rein in costs. The move would result in $600 million in savings in 2024, Maersk added, although restructuring costs would rise by $350M, mostly impacting this year.
Maersk, which controls around a sixth of global container trade, noted that it had been operating in a"difficult market environment," particularly at its key ocean business. Global container volumes at the unit are seen falling by up to 2% this year due to weakening consumer demand for goods following a pandemic-era boom.
Third-quarter revenues, meanwhile, slipped by $10.6 billion to $12.1B, while earnings before interest, taxes, depreciation and amortization slumped by $9B to $1.9B.We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: Include punctuation and upper and lower cases.
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