Shares of Maersk plunge 18% as shipping giant announces 10,000 job cuts, says profit will be at lower-end of guidance

US Markets
Friday, November 3rd, 2023 2:15 pm EDT

Key Points

  • Workforce Reduction and Profit Expectations: Maersk has announced plans to cut over 10,000 jobs and expects its profits to be at the lower end of its previous guidance. The company is taking these measures in response to challenges in the global trade industry.
  • Share Price Decline and Industry Challenges: The firm’s Denmark-listed shares have fallen by 18%, reaching their lowest level since October 2020. Maersk’s CEO, Vincent Clerc, attributes these difficulties to subdued demand, prices returning to historical levels, and inflationary pressures on the company’s cost base. Overcapacity in many regions has also driven down prices.
  • Economic Conditions and Response: Maersk’s strong earnings in 2022, driven by increased demand and supply chain challenges during the pandemic, have given way to a cooler macroeconomic environment. The company is accelerating cost and cash containment measures, and the job cuts will reduce its headcount from 110,000 in early 2023 to below 100,000, resulting in expected savings of $600 million in 2024 compared to 2023. The article also highlights how changes in transportation demand are closely tied to economic conditions and the challenges posed by overcapacity in the shipping industry.


Shipping giant Maersk has announced plans to cut more than 10,000 jobs as it faces challenges in the global trade industry. The company cited subdued demand, prices returning to historical levels, and inflationary pressure on its cost base as contributing factors. CEO Vincent Clerc noted overcapacity in many regions leading to reduced prices. Despite maintaining its full-year earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance of $9.5 billion to $11 billion, Maersk expects earnings to be at the lower end of this range. Third-quarter revenue dropped significantly from $22.8 billion in 2022 to $12.1 billion. The job cuts are expected to result in $600 million in savings by 2024 compared to 2023, with the company aiming to address challenges in the transportation sector.

The company, which had reported record earnings in 2022 due to surging demand and supply chain challenges during the pandemic, is now facing a cooler economic environment. The job cuts and measures to contain costs and cash are part of Maersk’s response to these changing conditions. The reduction in headcount, from 110,000 in early 2023 to below 100,000, reflects the need to adapt to the evolving industry landscape.

The article highlights how the global transportation industry is closely tied to economic conditions, as transportation demand is influenced by the overall health of the economy. Traditional industry dynamics, such as idling more ships during periods of reduced demand, are not unfolding as expected in the current situation, leading to challenges for Maersk and the industry as a whole.

For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/03/shipping-giant-maersk-announces-10000-job-cuts-warns-of-volatility.html