Overview

• Maersk, one of the world's largest shipping companies, has announced it will cut 10,000 jobs due to falling freight rates and demand, following an earlier reduction of 6,500 staff this year.
• The company's profits plunged by nearly $8.5bn in its most recent results, citing 'worsening' prices for shipping by sea and inflated operational costs due to high inflation, rising interest rates and reduced consumer spending.
• Maersk's job cuts are expected to save the company around £600m in the next year and will reduce its global workforce to below 100,000.
• The company, which controls about one-sixth of the global container trade, has warned of a 'new normal' of subdued demand and overcapacity across most regions triggering price drops.
• Shares in Maersk dropped by 11.1% following the announcement. The company maintains its revenue and profit expectations, but warns they will land at the lower end of its estimates.
• The downturn has been described as the largest in Maersk's ocean freight business, where shipping rates are much lower. The company recently expanded into land-based logistics, but this sector has also been impacted due to lower rates in the air and haulage market, as well as lower volumes for lead logistics and e-commerce.