World’s Biggest Container Shipping Line Maersk To Lay Off 2,000 Employees

Maersk, arguably world’s biggest container shipping company has announced plans to lay off over 2,000 employees as it plans to cut costs.

This is despite the company announcing recovery in business following adverse economic effects caused worldwide by the Covid-19 pandemic.

“A.P. Moller – Maersk is on track to deliver a strong quarter 3 with solid earnings growth across all our businesses, in particular in Ocean and Logistics & Services. Volumes have rebounded faster than expected, our costs have remained well under control, freight rates have increased due to strong demand,” Chief Executive Soren Skou said in a statement.

Maersk currently has around 80,000 employees.

In the third quarter of 2020, Maersk’s Ocean-division business went down by around 3 per cent as compared to the third quarter of 2019.

The layoffs will cost the company around $100 million (Ksh10 billion) in the third quarter of 2020.

The company expects its full-year earnings before interest, taxes, depreciation and amortisation (EBITDA) to range between $7.5 billion to $8.0 billion.

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