Global Shipping Giant Maersk To Cut Around 1,000 Jobs After Profit Falls To 5-Year Low

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

Source: Maritime Shipping News