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Maersk Line lays off 4,000 staff and reduces capacity

Time:2015-11-07 18:07 Source:Logistics Online Writer:admin Click:Times

Danish shipping giant, Maersk Line is to shed 4,000 jobs and will not be exercising options on eight newbuildings in a bid to cut costs to cope with the drop in demand, according to Shipping Gazette.


The move follows Maersk's recent announcement that it was cutting its 2015 full year profit forecast for its container line from US$2.2 billion to $1.6 billion.


In an emailed statement, the world biggest shipping company said it would be reducing its land based staff of 23,000 by reducing 4,000 positions.


"The organisational and on-going automation and digitalisation will enable Maersk to reduce the global organization by at least 4,000 positions by the end of 2017 with the aim of minimising redundancies through managing natural attrition," the statement said.


Maersk Line CEO Soren Skou added: "We are fewer people today than a year ago. We will be fewer next year and the following year. These decisions are not taken lightly, but they are necessary steps to transform our industry."


The company is aiming to cut its Sales, General & Administration (SG&A) cost run-rate by US$250m over the next two years with increased standardisation and digitalisation.


Maersk also announced it would not be taking up options for six second generation 19,630 TEU newbuildings and two 3,600 TEU feeder vessels. It will also postpone the decision on eight optional 14,000 TEU vessels.


"In light of the lower demand these initiatives will allow Maersk Line to deliver on the ambition to grow at least in line with the market to defend the market leading position," the statement said.

(Editer:admin)

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