A global economic slowdown, with a sharp drop in demand, could be behind AP Møller-Maersk's decision to lay off about 10,000 people.

The Danish company, which owns the world’s second largest fleet, tells Port Strategy that lay offs have sadly been underway, as the firm looks to “intensifying” cost-saving measures.

“Our industry is facing a new normal with subdued demand, prices back in line with historical levels and inflationary pressure on our cost base,” says Chief Executive Vincent Clerc.

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In 2023 so far, 6,500 jobs have been cut. With this, the total layoff count is at 103,500.

“Since the summer, we have seen overcapacity across most regions triggering price drops and no noticeable uptick in ship recycling or idling,” Clerc adds.

The company confirmed that 2,500 jobs will be cut in the coming months, and a further 1,000 in 2024.