Image for representation purposes only
Danish shipping giant A.P. Moller-Maersk has announced plans to cut around 1,000 corporate jobs as it faces falling earnings caused by lower freight rates and continued overcapacity in the global shipping industry.
The company said the job cuts will affect about 15% of its corporate roles across regions, countries and its headquarters.
The reduction represents less than 1% of Maersk’s total workforce of around 100,000 employees worldwide.
Maersk said the move is part of efforts to simplify its organisation, reduce corporate overheads and maintain strong cost discipline.
The company expects the measures to deliver annual cost savings of about $180 million and will also increase its focus on using artificial intelligence to improve efficiency.
Maersk’s announcement came alongside financial results showing a decline in revenue and profits in 2025, even as shipping volumes increased.
The company reported revenue of $54 billion for the year, down from $55.5 billion in 2024. Net profit more than halved to $2.7 billion from $6.1 billion, marking the company’s lowest profit level in the past five years.
Shipping volumes increased by 4.9%. However, Maersk said its earnings were hit by falling freight rates, as too many ships competed for limited demand.
Profits from the company’s ocean transport business dropped by nearly one-third to $6.3 billion, which was the main reason for the overall decline in earnings.
Operating profit (EBIT) for 2025 stood at $3.5 billion, slightly above analyst expectations of $3.2 billion, but sharply lower than the $6.5 billion reported in 2024.
Maersk said global trade during the year remained highly uncertain due to the continued Red Sea situation, renewed tariff measures and ongoing geopolitical tensions, which disrupted supply chains.
The company also reported weaker performance in the fourth quarter. Revenue for the quarter fell to $13.33 billion from $14.59 billion a year earlier.
EBITDA dropped by 49% to $1.84 billion, while EBIT declined by 94% to $118 million. Analysts surveyed by FactSet had expected revenue of $12.87 billion, EBITDA of $1.84 billion and EBIT of $210 million.
Looking ahead, Maersk warned that earnings could come under further pressure. For 2026, the company expects shipping volumes to grow by between 2% and 4%.
However, at current and expected freight rates, Maersk said operating results next year could range from a loss of $1.5 billion to a profit of $1 billion.
For the current year, the company is targeting underlying EBITDA of between $4.5 billion and $7 billion, down from $9.57 billion in 2025.
Underlying EBIT is forecast to be between $1 billion and minus $1.5 billion, compared with $3.36 billion last year.
Following the announcement, Maersk’s shares fell 5.73% to 15,065 Danish kroner on the NASDAQ Copenhagen exchange.
References: morningstar, livemint
Disclaimer :
The information on this website is for general purposes only. While efforts are made to ensure accuracy, we make no warranties of any kind regarding completeness, reliability, or suitability. Any reliance you place on such information is at your own risk. We are not liable for any loss or damage arising from the use of this website.
Disclaimer :
The information on this website is for general purposes only. While efforts are made to ensure accuracy, we make no warranties of any kind regarding completeness, reliability, or suitability. Any reliance you place on such information is at your own risk. We are not liable for any loss or damage arising from the use of this website.
⚓️ Enhance Your Knowledge. Prevent Accidents. Stay Safe at Sea.
1. eBooks for Engine Department
Master machinery operations, troubleshooting, and safety procedures with expertly written guides tailored for marine engineers. Prevent costly breakdowns and onboard accidents through practical knowledge.
👉 Explore Engine Department eBooks
2. eBooks for Deck Department
Sharpen your seamanship, navigation, and cargo-handling skills with real-world case studies and practical insights designed for deck officers and cadets.
👉Discover Deck Department eBooks
3. eBooks on Electrical Fundamentals & Issues
Understand marine electrical systems, identify potential faults, and prevent onboard electrical failures with step-by-step explanations from industry experts.
4. Pocket Guides for Quick Reference
Compact, handy, and loaded with essential checklists—perfect for on-the-go reference during operations and emergencies at sea.
5. Combo Packs to Save Big
Access multiple expert eBooks at discounted prices. Ideal for professionals seeking complete safety and operational knowledge across various ship departments.
6. Digital Maritime Courses – Learn at Your Own Pace
Upgrade your competence with Marine Insight Academy’s online courses. Learn from industry professionals anytime, anywhere, and become a safer, smarter seafarer.
👉 Join Online Maritime Courses
Subscribe To Our Daily Newsletter
By subscribing, you agree to our Privacy Policy and may receive occasional deal communications; you can unsubscribe anytime.