Maersk to cut jobs in major restructuring

A major shakeup at shipping giant Maersk will cut jobs and affect a third of its staff.

It said on Tuesday (Sep 1) it wants to integrate its seaborne container and in-land logistics businesses.

Maersk, which handles about one in five containers shipped worldwide, has been under pressure from investors to speed up its transformation.

The firm though has proved resilient in the face of the recent slowdown.

Cost cuts and its reinstatement of more upbeat guidance last month have helped to double its share price since March.

Shares were also trading up Tuesday.

The company sold its oil and gas assets in 2017 to Total as part of its efforts to become a more streamlined.

It focused on its container and in-land logistics business for large customers such as Walmart and Nike.

Under the new restructuring, some of its shipping brands will cease to exist, Maersk said in a statement.

A spokeswoman said that between 26,000 and 27,000 employees out of Maersk's total headcount of 80,000 will be affected.

But the company did not say how many would be laid off.

And an internal email seen by Reuters also gave no detail on the number of job cuts.

Video Transcript

- A major shakeup at shipping giant Maersk will cut jobs and affect a third of its staff. It said on Tuesday it wants to integrate its seaborne container and inland logistics businesses. Maersk, which handles about one in five containers shipped worldwide, has been under pressure from investors to speed up its transformation. The firm, though, has proved resilient in the face of the recent slowdown.

Cost cuts and its reinstatement of more upbeat guidance last month have helped to double its share price since March. Shares were also trading up on Tuesday. The company sold its oil and gas assets in 2017 to Total as part of its efforts to become more streamlined. It focused on its container and inland logistics business for large customers such as Walmart and Nike.

Under the new restructuring, some of its shipping brands will cease to exist, Maersk said in a statement. A spokeswoman said that between 26,000 and 27,000 employees out of Maersk's total headcount of 80,000 will be affected. But the company did not say how many would be laid off. And an internal emails seen by Reuters also gave no detail on the number of job cuts.