Big drop in layoffs? Maersk said the recovery in global markets was better than expected

Maersk Group Said on Tuesday that global demand was recovering faster than expected and raised its earnings forecast, but also announced plans to cut 2,000 jobs as it seeks to streamline processes and cut costs, Reuters reported.S renSkou, Maersk's chief executive, said in a statement: "Maersk is on track to deliver a strong third quarter, with solid earnings growth across all our businesses, particularly in the Marine and logistics and services sectors."Freight volumes are picking up faster than expected and our costs are still well under control."

Maersk Line announced on Tuesday that it was revising its full-year forecast for 2020 based on its third-quarter performance and fourth-quarter forecasts.Maersk expects third-quarter revenue of $9.9bn (unaudited) and third-quarter earnings before interest, tax, depreciation and amortisation of about $2.4bn before restructuring and integration costs are taken into account, thanks to continued demand recovery and cost-containment initiatives.Shipments in the third quarter of 2020 were down about 3% from last year, slightly better than expected.

Based on its performance in the third quarter of 2020 and its assessment of current business trends, Maersk expects full-year 2020 earnings before interest, tax, depreciation and amortisation of about $7.5bn - $8bn, compared with its previous forecast of $6bn - $7bn, before accounting for restructuring and integration costs.But given the impact of coVID-19, the next few quarters still face significant uncertainty.

"In the third quarter, Maersk performed well in all of its businesses, particularly in shipping and logistics and services, so we expect solid growth," Mr Schsoren said.Volume rebound faster than expected;Freight rates are rising because of strong demand;In addition, we have achieved good results in cost control, and our revenue in the logistics and services business is growing rapidly.For the same reason, the outlook for the fourth quarter is solid, leading us to raise our full-year outlook.But coVID-19 continues, and the future of 2021 remains uncertain.In 2021, the positive impact of national stimulus plans is likely to recede, with renewed national and border closures still a possibility, which will have an impact on demand.In addition, the time and effect of the new coVID-19 vaccine on the market will also have an impact on 2021."

On September 1, Maersk announced further strategic consolidations to improve customer experience, including the merger of its Safmarine brand with Maersk, and the integration of its Air and LCL operations under the Damco brand with Maersk logistics and services products.Based on these changes, the Safi shipping and Damasus brands will be withdrawn from the market by the end of 2020.

In addition, Maersk will simplify the organizational structure of its global maritime and logistics operations to be customer-focused and further improve efficiency.Hamburg South America will optimize its organizational structure by the end of the third quarter, working with Maersk to form a customer-focused team.Meanwhile, Maersk and Hamburger South America will continue to serve customers as two independent brands and differentiated service models.These steps are an important step towards Maersk becoming an integrated container shipping logistics company that connects and simplifies customer supply chains.

Vincent Clerc, chief executive of Maersk's shipping and logistics business, previously said the restructuring would affect some jobs as there was no longer a need to duplicate jobs and jobs.At the time, a Maersk spokesman said the restructuring would affect 26,000 to 27,000 employees, or about a third of the company's roughly 80,000 employees.

Maersk has gone through several rounds of job cuts in recent years.The most recent was in November, when Maersk announced it would lay off a number of staff in Copenhagen and other parts of the world as part of its cost-cutting programme.There were reports at the time that Maersk would shed up to 200 jobs.In early 2019, Maersk closed its Container industry operations in Chile after 1,200 people were laid off.Maersk also cut jobs when it bought Hamburg South America in 2017, cutting about 100 jobs.

Maersk currently employs a total of about 80,000 people in 130 countries and territories and is expected to incur restructuring charges of about $100m in the third quarter.