Release Date: 11 January 2008
Release ID: 823
Maersk Line, the container shipping division of the A.P. Moller – Maersk Group, announces the details of its new strategy to drive the turnaround of the business and return to sustainable profitability. A long-term strategy comprising four core elements will simplify the company. It builds on the improved financial results and customer satisfaction seen in the recent months.
The future will be a Maersk Line delivering a highly reliable service focused more closely on customers needs.
The core elements of the strategy are
Filling our ships with profitable cargo Provide the most reliable product demanded by our customers Provide a faster, more responsive service closer to customers Reduce complexity and cost
In order to reduce complexity and cost, the global organisation will be reduced by 2,000 to 3,000 positions, out of 25,000. The main element is reducing our regional organisations into smaller teams and pushing decision-making out to the countries – closer to the customers. Further, a thorough process excellence project will reduce bureaucracy and streamline processes – to the benefit both for customers and internal efficiency.
In order for Maersk Line to concentrate on its core business of container shipping, container inland services (trucking, rail, stevedoring etc.) and logistics activities (Maersk Logistics and Damco) is being separated from the Maersk Line organisation. Maersk Line’s structure will also be reduced from 14 to 11 regions to further simplify the global organisation.
The new strategy is based on comprehensive analyses over the past 6 months of Maersk Line’s organisation and feedback from customers. A new management team has been established to take responsibility for the delivery of the strategy (see below).
Eivind Kolding, CEO, Maersk Line, says: “Maersk Line has a strong ambition to reinforce its leading position in the market and to return to long-term profitability – this strategy will drive us towards these goals. Maersk Line will be dependable, customer-focused and highly competitive. The new management team, which will drive the strategy, has the experience and proven ability to deliver results”.
“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.”
The reorganisation is expected to be completed by April 2008.
Nils S. Andersen, CEO of the A.P. Moller – Maesk Group, strongly supports Maersk Line’s new strategy: “The changes of Maersk Line follow our strategy of focus on customer needs and competitiveness. 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.”
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