Maersk Line To Reduce Manpower By 4000
Maersk Line has opted to cost cutting that includes a massive reduction of 4000 employees from its total global headcount of 23,000. This cost-cutting is expected to happen at the end of 2017. In a recent release from the world’s number one container, there is a line that said “Maersk Line will reduce its network capacity and postpone investments in new capacity while the same time reducing operating costs by escalating already announced plans to simplify the organization.”
Due to the worsening conditions of container sector, Maersk Group’s annual results were recently revised downwards by $600m.
For the upcoming two years, the company is planning to reduce its annual sales, general and administration (SG&A) cost run-rate by $250 million with an impact of $150m in 2016.
“We are on a journey to transform Maersk Line. We will make the organisation leaner and simpler. We want to improve our customer experience digitally and at the same time work as efficiently as possible,” said the line’s CEO, Søren Skou.
He also added stating, “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.”
Maersk Line has also decided to close four of its services (ME5, AE9, AE3, and TA4) and plans are ready to cancel further a total of 35 sailings this quarter. It is doubtful to exercise options for six 19,630 TEU vessels and two 3,600 teu feeders while it would postpone a decision on an optional eight 14,000 teu vessels.
Source: JOC
