Maersk shipping to cut 400 jobs

June 1, 2012 at 1:30 PM

COPENHAGEN, Denmark, June 1 (UPI) -- Danish container shipper Maersk Line said Friday it would eliminate 400 jobs as part of a reorganization strategy.

The shipping giant, which current employs 25,000 workers around the globe, said it lost $566 million in the first quarter after earning a net profit of $416 million in the first three months of 2011.

"We want to build a successful business that consistently delivers acceptable returns to its shareholders," Chief Executive Officer Soren Skou said in a statement.

"This requires that we challenge ourselves to have as efficient an organization as possible," he said.

The Copenhagen Post reported Maersk Line, as a subsidiary of A.P. Moller-Maersk, generates 42 percent of its parent company's business.

The company has already said it would ground some ships to help increase freight rates and reduce its fuel consumption.

After spending $5.8 billion on fuel in 2011, the firm has targeted a 22 percent reduction in fuel consumption by 2014, the newspaper said.

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