Maersk cuts 10,000 jobs as shipping demand falls

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AP Moller-Maersk announced a reduction of 3,500 jobs due to decreased demand and lower freight rates, following a previous cut of 6,500 positions earlier this year. The company’s profits plummeted by 92 percent in the latest quarterly results, attributing the need for more layoffs to worsening sea shipping prices. Despite initially experiencing a surge in demand during the COVID-19 recovery, issues such as congestion at UK ports and a shortage of shipping containers in Asia drove up inflation. Maersk expects the job cuts to save £600 million next year, reducing its global workforce to below 100,000. The company cautioned that geopolitical tensions, a slowing global economy, and financial risks could hinder any anticipated improvements in the coming months and in 2024. Following these developments, Maersk’s shares dropped by 11.1 percent last week.

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