Shipping giant Maersk Line to cut workforce by 10 per cent

Jan 8, 2008, 11:46 GMT

Copenhagen - Danish-based Maersk Line, the world's biggest container shipper, on Tuesday said it would slash some 10 per cent of its workforce as part of moves to restore profits.

In addition to job cuts impacting 2,000 to 3,000 employees worldwide, Maersk Line was to 'concentrate on its core business of container shipping,' a statement said.

Maersk Line has some 25,000 employees worldwide and operates more than 500 container vessels, and is part of the shipping and oil giant AP Moller-Maersk Group.

Costs related to the 2005 takeover and merger of P&O Nedlloyd were a factor mentioned for Maersk Line's poor bottom line. It posted a net loss of 168 million dollars for the first half-year of 2007.

The group would also separate its units for inland services such as trucking and rail as well as logistics from the Maersk Line organization.

Maersk Line chief executive Eivind Kolding said the company aimed 'to return to long-term profitability,' the statement said.

The moves were were backed by Nils Smedegaard Andersen, who in November took on the position as chief executive of AP Moller-Maersk Group.

Andersen mentioned the container business as one of his priorities when he took over the job.

AP Moller-Maersk Group operations include sea transport, offshore oil and gas activities and retail and shipyard operations.