Political Economy AnalySynthesis No.

8
Name: Elisha Anne Bascon
Course & Section: International Development Studies 41
Subject: International Political Economy
Professor: Jumel G. Estrañero

“Maersk to cut 10,000 jobs as shipping demand drops”

A. News Tidbits
Due to the economic slowdown, one of the world’s shipping companies which is Møller-
Maersk is cutting 10,00 jobs to safeguard its financial performance as price forecasts worsened.
This plan was also made for the shipping company to adjust to the ‘new normal’ after they
benefited from sky-high prices during the coronavirus pandemic. It is also stated in the news that
“Since the summer, they have seen overcapacity across most regions triggering price drops and
no noticeable uptick in ship recycling or idling”. The Maresk employees are the latest worker to
be affected by the global economic slowdown, due to several economic and political reasons.

B. Analysis
The pandemic really left a huge problem for the economy of most countries. The
ongoing wars that are happening also have a huge impact on our economy which makes it hard
for different countries to lessen or remove inflation of products and services. Because of this a lot
of industries encounter a lot of challenges in maintaining the services and products that they
offer. This also has subsequently dented consumer spending power across the US, Europe, and
Asia, which also forced companies to tighten their belts and either curb hiring or cut existing
jobs.

C. Policy Recommendations
It is important that companies create a concrete plan for future problems that their
companies might experience, although the future is really unpredictable.

Reference:
 Makortoff, K. (2023, November 03). Maersk to cut 10,000 jobs as shipping demand
drops. The Guardian. https://www.theguardian.com/business/2023/nov/03/maersk-to-cut-
10000-jobs-as-shipping-demand-drops