A.P. Moller Maersk Cuts 2000 Employees

Maersk Building, Copenhagen

writer icon Kristine Hanson     ISB   |   Business     🕐 14. Oct. 2020

At the beginning of September, Maersk announced a major organisational change. Maersk stated that the shipping company Safmarine and the forwarding company Damco were to cease to be independent units and instead be included under the Maersk name.

The costs of the restructuring are expected to be $100 million. This change will affect 27 000 employees and result in redundancies for 2000 employees.

Meanwhile, Maersk has, in their third quarter, had a turnover of $9.9 billion and an operating profit (EBITDA) before restructuring and integration costs of $2.4 billion. dollars.

“A.P. Moller Maersk is on track to deliver a strong Q3 with solid earnings growth across all our businesses, in particular in Ocean and Logistics & Services," said Søren Skou, CEO of A.P. Moller Maersk.

"Volumes have rebounded faster than expected, our costs have remained well under control, freight rates have increased due to strong demand and we are growing earnings rapidly in Logistics & Services. The outlook for Q4 is solid for the same reasons, and we are therefore able to upgrade our expectations for the full year,” Skou added.

Despite the fourth quarter of 2020 and 2021 looking bright, the worldwide pandemic still deems it uncertain times.

"The outlook for 2021 remains uncertain due to the ongoing pandemic. The positive impact from stimulus packages may be less strong in 2021, potential new lockdowns will impact demand and the timing and effectiveness of a potential vaccine will impact 2021,” Skou added.

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