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Thursday, November 05, 2015

Maersk Line to Cut 4,000 Jobs as Market Deteriorates

http://www.wsj.com/articles/maersk-line-to-cut-staff-as-market-deteriorates-1446623156

Danish conglomerate A.P. Møller-Maersk A/S said Wednesday its Maersk Line container-shipping unit would cut 4,000 jobs from its land-based staff of 23,000. It is also canceling options to buy six Triple-E vessels, the world’s largest container ships, to cope with the deepest market slump in the industry since the 2009 global financial crisis. Maersk said it would also push back plans to purchase eight slightly smaller vessels.
The decision to halt its fleet expansion represents a significant U-turn for the company, which had been investing heavily amid the downturn. Counting on its market-share dominance and deep pockets, it aimed to expand as smaller competitors retrenched. But after issuing a surprise profit warning last month, Maersk signaled it, too, was no longer immune to a combination of slowing global growth and massive container ship overcapacity on many routes.

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