Maersk cutting jobs and lines

Savings and streamlining plan kicked into action

Maersk is making big cuts (photo: Quistnix ) Maersk is making big cuts (photo: Quistnix )
November 4th, 2015 4:55 pm| by Ray W
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AP Møller-Maersk’s shipping division, Maersk Line, is cutting jobs and making other streamlining efforts.

“We are on a journey to transform Maersk Line and create a leaner and simpler organisation,” Maersk Line head Søren Skou told Jyllands-Posten.

“We will improve our customer’s digital experience and, at the same time, work as efficiency as possible.”

Maersk Line will reduce the capacity of its route network and defer investments in new capacity while continuing to simplify its organisation.

Hard choices
Over the next two years, the company aims to reduce its sales and administrative costs by over a billion kroner.

The land staff of 23,000 will be reduced by 4,000 by the end of 2017.

“We have fewer people today than a year ago and we will trim more this year and next,” said Skou. “These are not decisions that we take lightly.”

Ships also cut
Poor market prospects have Maersk reducing its network capacity during the forth quarter of this year and next.

Four routes have already been closed, and another 35 departures have been cancelled for the next quarter.

The belt-tightening also extends to the company’s already-announced intentions to buy new ships. Previously granted options will not be used to purchase six mega ships and two feeder vessels. The company will also defer the decision on whether or not to exercise options on eight other ships.

READ MORE: Maersk’s super ship too big

AP Møller-Mærsk will publish its quarterly results on Friday 6 November.