A.P. Moller-Maersk A/S, a bellwether for global trade, fell in value after the company said it would cut at least 10,000 jobs to protect its profitability in a shipping market that will remain weak until about 2026.
The staff reductions, equivalent to 9% of headcount, are caused by lower freight rates and increased competition in the shipping industry. About 6,500 of those positions have already been eliminated, Chief Executive Officer Vincent Clerc said.
Container lines are facing an abrupt drop in earnings after record profits in 2021 and 2022.
The company’s earnings before interest, tax, depreciation and amortization fell more than 80% to $1.88 billion in the Q3.
So Maersk expects to save $600 million through job cost-cutting measures, according to a statement Friday.
The Copenhagen-based company will also revise its share buyback program for 2024 and reduce capital expenditure estimates for 2023 and 2024.