Latest News | Container Logistics Major Maersk to Cut Jobs as Part of Restructuring Drive

New Delhi, Sep 1 (PTI) Global container logistics major Maersk on Tuesday said there will be job cuts as part of its restructuring drive to simplify the organisation and reduce cost.

However, the Danish firm that handles majority of containers worldwide, did not specify the exact number of job losses.

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Maersk will simplify its organisational structure across Ocean & Logistics globally to further improve customer centricity and efficiency, the company said in a statement.

Due to the changes, the Safmarine and Damco brands will not be marketed by the end of 2020, it said.

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Asked whether there will be job cuts on account of the restructuring, the company said jobs will be impacted but did not provide details.

“Simplifying the organisation will regrettably impact jobs due to the discontinuation of duplicate roles and roles that will no longer be needed. We are committed to working with our employee representative bodies across the impacted locations throughout the process and aim to finalise the process for most locations by 1 October," the company told PTI in response to an e-mail query.

This is no reflection on Maersk people, who have all worked relentlessly and have been fully committed to serving customers, the company said.

"It is not easy to say goodbye to skilled and dedicated employees, but, regrettably, it is a consequence of the integration and a necessary part of our efforts to reduce costs in order to drive sustainable growth as we pursue our strategic objectives," it said.

Asked about the the number of job cuts, it said: "We are not in a position to disclose any specific numbers while we are working with our employee representative bodies across the impacted locations and will first and foremost ensure that our employees are informed first.”

Maersk in a statement said it has introduced strategic changes that will further improve customer experience and end-to-end service delivery.

As part of this, the Safmarine brand will be integrated into Maersk to enhance customers' access to the global integrated offering.

In addition, the Damco brand's Air and LCL (Less than Container Load) offering will be combined with Maersk's logistics and services products to complement its end-to-end offering, it said.

Also, a more simplified and customer-centric global Ocean & Logistics organisation is being introduced, it said and added the changes represent a major step towards becoming an integrated container transport and logistics company, connecting and simplifying customers' supply chains.

“Our customers are at the heart of our vision. Their evolving supply chain needs are increasing the demand for multiple modes of transport and to meet these needs, we're bringing our company's expertise and capabilities even closer together. Taking these steps are key to accelerating our transformation,“ said Vincent Clerc, CEO of Ocean & Logistics, A.P. Moller - Maersk.

Over time, the value propositions of Maersk and Safmarine have converged, as both brands have been focusing on building a customer-centric culture and as the digital interactions with customers have increased, the company said.

“With the integration of Safmarine, we can present Safmarine customers with the full ocean and supply chain offering and more scale. At the same time, I'm very excited to have Safmarine's passion for customers closer to Maersk by uniting our teams,” said Vincent Clerc.

Since focusing purely on freight forwarding in 2018, Damco has demonstrated significant value to customers in the Air and Ocean LCL space. During this time, it has become apparent through close customer engagements that the value proposition of Maersk can be greatly enhanced with the expansion of multiple modes of transport, the company said.

The integration of Air and LCL into Maersk will help meet these needs and give businesses access to a simplified, connected and agile experience under the Maersk brand, as well as to its scale, it said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)