Job Cuts at Maersk and Global Forwarders

November 9, 2023

In a worrying sign for the international moving community, Maersk has announced further large-scale job cuts with global freight forwarding companies also under pressure to reduce overheads.
 
FreightWaves reported that the world’s second-largest ocean carrier announced that it is “intensifying” job cuts because of “worsening market conditions” in ocean shipping. In 2023, Maersk has cut 6,500 jobs and decided on a further workforce reduction of 3,500 jobs, depleting global headcount by 9%.
 
“Given the challenging times ahead, we accelerated several cost and cash containment measures. We are in a very uncertain trading environment with significant further downside risk potential — one that could stay with us for quite a while,” said Vincent Clerc, Chief Executive Officer of A.P. Moller-Maersk on a call with analysts.
 
In addition, based upon sources within the forwarding industry, The Loadstar reported that financial reserves built up over previous years by freight forwarders have now been exhausted because of current market conditions.

As insider told the news website, “During the last two years every country has been “banking money” from their results each month, and reporting numbers back to head office to only meet budgets; anything above budget has been hidden in the country’s balance sheets. Over the last 12 months, when the market has been deteriorating and results have come under pressure, each country has dipped into these reserves and been artificially bumping up their results each month.”