Maersk shares slide after shipping line unveils plan to cut at least 10,000 jobs

Investing.com -- Shares in AP Møller-Maersk (CSE:MAERSKb) slumped on Friday, touching their lowest mark in three years, after the Danish shipping group announced that it would slash nearly a tenth of its workforce following a steep drop in quarterly profit and revenue.

In a statement, the company said it would now aim to reduce its workforce to "below 100,000, from 110,000 in January 2023" as it intensifies a push to rein in costs. The move would result in $600 million in savings in 2024, Maersk added, although restructuring costs would rise by $350M, mostly impacting this year.

Maersk, which controls around a sixth of global container trade, noted that it had been operating in a "difficult market environment," particularly at its key ocean business. Global container volumes at the unit are seen falling by up to 2% this year due to weakening consumer demand for goods following a pandemic-era boom.

Third-quarter revenues, meanwhile, slipped by $10.6 billion to $12.1B, while earnings before interest, taxes, depreciation and amortization slumped by $9B to $1.9B.