Maersk (OTCMKTS:AMKBY) layoffs are on the way as the transport and logistics company plans to cut jobs to reduce costs.
According to a press release from Maersk, the company has already been laying off employees throughout the year. As a result, it’s cut its workforce from 110,000 people to about 103,500 today.
However, Maersk notes that it’s not done with the job cuts. The company says that weakening demand for its services has it planning to cut another 3,500 jobs. The first 2,500 will come in the coming months, with the remainder taking place in 2024.
Vincent Clerc, CEO of Maersk, said the following about the layoffs in a news release:
“Our industry is facing a new normal with subdued demand, prices back in line with historical levels and inflationary pressure on our cost base. Since the summer, we have seen overcapacity across most regions triggering price drops and no noticeable uptick in ship recycling or idling. Given the challenging times ahead, we accelerated several cost and cash containment measures to safeguard our financial performance.”
Maersk Joins Layoffs Trend
Maersk is far from the only company dealing with the effects of inflation on the economy. Several other businesses have suffered and laid off employees as a result. This also comes as the Federal Reserve maintains increased interest rates in an effort to curb further inflation.
AMKBY stock is up 2.9% on Friday morning after announcing its layoffs plan.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
