Maersk, one of the world's major ocean carriers, has announced a reduction of approximately 10,000 jobs due to increasingly challenging market conditions. The company, handling a significant portion of global container trade, reported a substantial decline in profit and revenue in its third-quarter financial report. Factors such as escalating costs, declining prices, and persistent overcapacity contributed to this downturn. Quarterly revenue plummeted to $12.1 billion, marking a stark contrast from last year's $22.8 billion.
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To navigate these challenging times, Maersk is preserving cash and cutting jobs to protect its financial performance. From a starting point of approximately 110,000 employees at the beginning of the year, the company has trimmed down to around 103,500 and now plans to cut an additional 3,500 jobs by early 2024.
The company is reconsidering its capital expenditures, reducing the projected spending from $9-10 billion to $8 billion for the year. This reduced expenditure mainly involves delaying investments in ocean shipping.
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