Container shipping company A.P. Moller-Maersk A/S has announced that 10,000 jobs will be laid off due to a drop in demand and overcapacity triggered by the global economic slowdown.
After Maersk ⁇ 's announcement, the company's shares fell by more than 16 percent.
Maersk CEO Vincent Clerc told Bloomberg TV that there will probably be a lot of pressure over the next two to three years. Under the I think we'll stay. Given the challenging times ahead, we have accelerated several cost and cash control measures to maintain our financial performance.
The number of employees laid off corresponds to 9 percent of Maersk ⁇ 's total number of employees. On the other hand, the dismissal decision is thought to be due to freight rates and increased competition in maritime transportation.
Stating that approximately 6,500 employees have already been removed, Clerc said that they expect to save close to $600 million with the step taken by Maersk ⁇ to reduce business costs.
It was also announced that the Copenhagen-based company would review its 2024 share buyback program and lower its capital expenditure forecast for 2023 and 2024.
