Maersk’s (Maersk) financial results for third quarter of 2023 were in line with expectations in a difficult market environment with rates well off their 2022 peak, so the company has decided to implement reduction measures.
According to the company, Maersk has imposed rigorous cost containment measures during the year to effectively cushion the impact of the challenging market conditions, including headcount reduction from 110,000 early 2023 to around 103,500 today.
Given the worsening price outlook in Ocean, Maersk is intensifying those measures and introduced plans to further decrease the workforce by 3,500 positions, with up to 2,500 to be carried out in the coming months and the remaining to extend into 2024.
This will reduce the global workforce to below 100,000 positions. Accordingly, total expected restructuring charge is now expected at USD 350m, up from USD 150m announced in February.
The adjustment of the workforce complements the decisive actions taken on cost containment throughout the year. The accumulated effect will bring down Maersk’s selling, general and administrative expenses (SG&A) cost by USD 600m for 2024.
In addition, CAPEX spend has been adjusted downward for 2023 and 2024 and further measures are under review, including the continuation of the share buyback program into 2024. Guidance for 2024 will be given on 8 February 2024, as part of the release of the Annual Results.
