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Maersk Line to axe 4,000 jobs by end of 2017

Xinhua, November 4, 2015 Adjust font size:

Denmark's Maersk Line, the world's biggest container-shipping company by volume, will lay off at least 4,000 employees globally by the end of 2017 as part of its response to the current market outlook, it announced Wednesday.

Maersk Line said in a press release that it will reduce its network capacity and postpone investments in new capacity, while at the same time reducing operating costs by implementing already announced plans to simplify the organisation.

In light of the lower demand, Maersk Line said these initiatives will allow it to grow at least in line with the market to defend the market leading position.

"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 Maersk Line CEO Soeren Skou.

Over the next two years, Maersk Line expects to lower the annual Sales, General & Administration cost run-rate by 250 million U.S. dollars with an impact of 150 million dollars in 2016.

Network capacity will also be reduced in the fourth quarter of 2015 and throughout 2016.

Apart from the already announced closure of the ME5, AE9, AE3 and TA4 routes, Maersk Line will further cancel a total of 35 sailings in the fourth quarter of this year.

The company has also decided not to exercise the previously announced options for six 19,630 TEU vessels and two 3,600 TEU feeders and will postpone decision on the optional eight 14,000 TEU vessels.

Maersk Line, one of the five core businesses of Maersk Group, currently employs 7,100 seafarers and 23,000 land-based employees worldwide and operates 619 container vessels.

Maersk Oil, the oil and gas branch of Maersk Group, announced end of last month that it would lay off within this year 10 to 12 percent of its global workforce, or about 1,250 employees, to adapt to the market and reduce costs. Endit