Shipping giant Maersk to cut jobs in major reorganisation
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Maersk, which handles about one in five containers shipped worldwide, has been under pressure from investors to speed up its transformation. A spokesman said that between 26,000 and 27,000 employees out of the company's total headcount of 80,000 will be affected by the restructuring.
PHOTO: BLOOMBERG
COPENHAGEN • Shipping group Maersk will cut jobs as part of a major reorganisation, an internal e-mail sent to its employees shows.
The company, which handles about one in five containers shipped worldwide, has been under pressure from investors to speed up its transformation from an unwieldy conglomerate.
Maersk sold its oil and gas assets in 2017 to French oil giant Total as part of efforts to become a more streamlined company focused on its container and in-land logistics business for large customers such as Walmart and Nike.
The integration of its Damco freight forwarding business and Africa-focused carrier Safmarine will take place by the end of this year, with its Hamburg Sud operation also affected by the shake-up, the e-mail said.
"Simplifying the organisation will regrettably impact jobs due to duplicate roles and roles that will no longer be needed," chief commercial officer Vincent Clerc said in the e-mail.
A Maersk spokesman said that between 26,000 and 27,000 employees out of Maersk's total headcount of 80,000 will be affected by the restructuring. The firm did not say how many would be laid off and the internal e-mail also gave no details on the number of job cuts.
In its statement, Maersk said that "a more simplified and customer-centric" Ocean and Logistics organisation is being introduced as part of its strategic changes.
A company spokesman told The Straits Times that the firm aims to finalise the reorganisation process for most of its locations by Oct 1, and it is committed to working with employee representative bodies through the process.
Maersk is not in a position to disclose specific numbers on affected employees, and the firm will ensure that those whose jobs are affected will be informed first, she added.
The company has been established in Singapore since 1975 and its main office is located in Cantonment Road.
Hamburg Sud, which Maersk bought in 2016, will remain a separate brand but its back office will be rolled into that of Maersk, the company said. The Safmarine and Damco brands will no longer be marketed by the end of this year.
The Hamburg Sud unit employs 4,500 people while Damco and Safmarine have 2,300 and 1,100 staff respectively, according to Maersk.
REUTERS
- Additional reporting by Choo Yun Ting
