Copenhagen: Container shipper Maersk Line has announced that it is to reduce its 25,000 member global workforce by 2000-3000 positions by April in order "to reduce complexity and cost" as part of its new long-term strategy to simplify the company.
Nils Andersen, CEO of parent group AP Moller - Maersk said, "The new organisation will be more lean and effective and represents an important step forward towards improving the profitability of our business. We regret having to reduce our number of employees, but consistent with our group values, the redundancies will be done in a responsible manner."
Maersk Line believes that the reduction to team size in its regional organisations and the ability for country specific teams to handle the decision-making process will benefit its customers. The move is part of a four-pronged strategy announced at the Danish group's Copenhagen headquarters this afternoon. Its other goals are to fill its ships with profitable cargo, to provide the most reliable product as per customer demand and to provide a faster, more responsive service closer to customers.
Additionally, the shipping company plans to launch a process excellence project to reduce bureaucracy, streamline processes and increase internal efficiency. Eivind Kolding, Maersk Line ceo, says: "The reality is that a leaner and simpler business requires fewer people and this means there will be fewer positions in Maersk Line, mainly in the middle management layer."
AP Moller - Maersk has also announced that its container shipping division will be segregated from its container inland services (such as trucking, rail and stevedoring) and logistics activities (Maersk Logistics and Damco) to allow it to focus on its core activities. Maersk Line's structure will also be reduced from 14 to 11 regions to "further simplify the global organisation". [08/01/08]
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