Maersk Plans Major Restructuring Affecting Thousands of Jobs

(Bloomberg) — A.P. Moller-Maersk A/S is planning a major overhaul of its organization that is set to affect thousands of jobs at the world’s biggest container shipping company.

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A lorry driver waits to load cargo as shipping containers, bearing the A.P. Moller-Maersk A/S logo, sit beyond at the Port of Felixstowe Ltd., a subsidiary of CK Hutchison Holdings Ltd. in Felixstowe, U.K., on Tuesday, Aug. 22, 2017. U.K. exporters are still reaping the benefits of a weaker pound, but they’re not sure how long the boost will continue as the country gets closer to withdrawing from the European Union.

Maersk said its Safmarine and Damco units will cease to exist as separate entities and instead be incorporated into the group, according to a statement on Tuesday. Borsen reported that the changes will affect about 3,400 jobs, which the company has since confirmed. In all, about 27,000 jobs will be affected by the broader restructuring, of which a “small number” will be direct cuts, Maersk told Borsen.

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The new organizational structure will provide its clients with a “more seamless experience across your supply chain,” Maersk said. Hamburg Sud and Alianca will remain independent brands, it said.

Maersk, which transports about 15% of the globe’s seaborne freight, is adapting its business to a world in which a pandemic and ongoing trade tensions are threatening demand for its services. The company said last month it went into the Covid-19 crisis with a plan to accelerate costs cuts, to help it weather the headwinds it was facing.

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