SHIPPING GIANT TO CUT JOBS IN MAJOR REORGANISATION

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-Shipping group Maersk will cut jobs as part of a major reorganisation, an internal e-mail sent to Maersk employees shows.

-The reorganisation will impact its Safmarine and Damco brands, which will cease to exist, as well as Hamburg Süd, which Maersk bought in 2017.

-The company did not say how many would be laid off and the internal email also gave no detail on the number of job cuts.

Maersk will cut jobs in a major shake-up that will affect a third of the shipping giant’s staff as it seeks to integrate its seaborne container and in-land logistics businesses, reports Reuters.

Catering for the large customers

Maersk, which handles about one in five containers shipped worldwide, has been under pressure from investors to speed its transformation from an unwieldy conglomerate.

The company sold its oil and gas assets in 2017 to 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.

Reorganization to impact jobs

“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 company did not say how many would be laid off and the internal e-mail also gave no detail on the number of job cuts.

-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 Hamburg Sud unit employs 4,500 people while Damco and Safmarine have 2,300 and 1,100 staff members respectively, according to Maersk.

Maersk declined to comment when contacted by Reuters regarding the internal email.

Source: Reuters