Maersk Line to Slash 4,000 Jobs by End-2017

Maersk Line, the world's number one container shipping firm, said Wednesday it would cut 4,000 jobs by the end of 2017 and defer vessel investments to buoy up its dominant position in a falling market.

The maritime division of Danish conglomerate A.P. Moeller-Maersk has been battling price and demand falls and is cutting capacity and has warned that a fall in activity will hit annual results due for publication Friday.

Late last month, petroleum division Maersk Oil announced it would slash its workforce by between 10 and 12 percent in the face of low oil prices.

"We are in the process of transforming Maersk Line, to make the organisation simpler and leaner. We want to improve the online experience of clients and at the same time work as efficiently as possible," said chief executive  Soren Skou in a statement.

Maersk Line is to slash administrative costs by $250 million over two years.

With the downturn in the market Maersk Line is also cutting back its fleet expansion, dropping plans to purchase six giant vessels on which it had placed an option.