Shares of Maersk plunge 18% as shipping giant announces 10,000 job cuts, says profit will be at lower-end of guidance
Publishing timestamp: 2023-11-03 11:34:00
Summary
Maersk, a bellwether for global trade, is facing subdued demand and inflationary pressures. The company's profits have plunged from last year's record highs as freight prices cool. Maersk plans to reduce its workforce by more than 10,000 people and expects profit to be at the low end of prior guidance. The company's shares have fallen to their lowest level since October 2020. Maersk maintains its full-year earnings guidance but expects it to come in at the lower end of the range. The company is implementing cost and cash containment measures and expects job cuts to result in savings of $600 million in 2024. The article highlights the challenges in the transportation sector and the impact of overcapacity on prices.
Sentiment: NEGATIVE
Tickers: MAERSK.B-DK, DP4H-FF,
Keywords: business news, trade, ap moeller - maersk a/s, earnings, business,