Maersk Supply is preparing to remove 25% of its onshore jobs to lessen the risk of going under in the current industry slump, according to reports.
With the recent announcement that Maersk had removed 20 vessels from its fleet, therefore removing approximately 400 crew members, it could be suggested that Maersk Supply is following other Maersk industry subsidiaries taking economic precautions in the midst of a shipping industry and supply chain slump.
Jørn Madsen, CEO of Maersk Supply Service, said: “We realize that the announcement is very unsettling for our employees. This is an unfortunate, but necessary step to ensure our organization reflects the current market reality,”
“Our top line has dropped by 40% over the past two years, and as a consequence we have a significantly reduced vessel and crew pool. A rightsizing of our organization is necessary to protect the long-term sustainability of our business.”
On September 26, 2016 Maersk Line announced it would not be ordering new vessels in a bid to combat oversupply, one of the most prevalent issues facing the shipping industry today.
Maersk Line announced in August 2016 that it has seen an unsatisfactory loss of $151 million in profit in Q2, 2016.
