Maersk Supply Service reduces onshore organisation

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Paper boatsIn response to the continued market decline in the offshore industry and the recently announced vessel divestment plans and offshore staff reduction, Maersk Supply Service has announced that the onshore organisation will be reduced by up to 25%.

Despite extensive cost reductions the past years the decreasing market demand in the offshore industry continues to put pressure on earnings and in Q2 Maersk Supply Service made a loss including impairments of $106m. In August Maersk Supply Service announced that it is divesting up to 20 vessels from its legacy fleet and making around 400 crew members redundant.

“We realise that the announcement is very unsettling for our employees. This is an unfortunate, but necessary step to ensure our organisation reflects the current market reality. Our top line has dropped by 40% over the past two years, and as a consequence we have a significantly reduced vessel and crew pool. A rightsizing of our organisation is necessary to protect the long-term sustainability of our business,” said CEO of Maersk Supply Service, Jørn Madsen.

The broadbased rightsizing is expected to concern all onshore functions of Maersk Supply Service. Up to 65 onshore positions will be affected globally.