A.P. Moller-Maersk (Maersk) has said it will follow through with previously announced plans to make 2,000 of its employees redundant as part of its strategy to recover from the effects of the COVID-19 pandemic.
The carrier made the announcement as it released its outlook for Q3, with the caveat that the market remained uncertain. It predicted it will generate a revenue of $9.9 billion, driven by a better than expected year-on-year (YoY) loss in its Ocean segment of 3%.
The redundancies will be part of a restructuring of the Ocean and Logistics and Services segments, which have been undertaken to save costs.
Søren Skou, CEO of A.P. Moller – Maersk said: “A.P. Moller – Maersk is on track to deliver a strong Q3 with solid earnings growth across all our businesses, in particular in Ocean and Logistics & Services.
“Volumes have rebounded faster than expected, our cost have remained well under control, freight rates have increased due to strong demand and we are growing earnings rapidly in Logistics & Services.
“The outlook for Q4 is solid for the same reasons, and we are therefore able to upgrade our expectations for the full year.
“The outlook for 2021 remains uncertain due to the ongoing pandemic. The positive impact from stimulus packages may be less strong in 2021, potential new lock downs will impact demand and the timing and effectiveness of a potential vaccine will impact 2021.”
A statement from the carrier said: “Trading conditions for the quarters ahead remain subject to a higher than normal uncertainty given the disruptions caused or potentially being caused by COVID-19.”
A number of the largest carriers in the world have seen an increase in profits during the COVID-19 pandemic as freight rates have increased and the price of bunker fuel has dropped.