Shipping company Maersk is planning to cut 3,500 more jobs because there is less demand for their services. This is on top of the 6,500 jobs they already cut earlier this year. Maersk transports goods for big companies like Nike, but their profits have dropped by 92% recently. The cost of shipping goods went up when lockdowns ended and businesses started trading again, which caused problems at UK ports. But now, because of high inflation and rising interest rates, people are spending less money and the demand for shipping has gone down. Maersk thinks that cutting jobs will save them £600 million next year.
The CEO of Maersk, Vincent Clerc, said that the shipping industry is facing a “new normal” with less demand and prices going back to how they used to be. He also said that rates have been under pressure recently and that there hasn’t been any improvement in ship recycling or idling. Maersk will cut 2,500 jobs in the next few months and the rest in 2024, but they haven’t said where or what types of jobs will be affected.
Maersk is one of the biggest container shipping companies in the world, so their latest results show that the global economy is slowing down. The container shipping industry has too many ships right now, which is good for people who need to ship things because it’s cheaper, but it’s bad for the companies that own and operate the ships.
The cost of shipping has gone down a lot recently. It used to cost $18,000 to ship one container, but now it only costs $2,000. This has allowed companies like The Entertainer to lower their prices for customers. When Maersk announced the job cuts, their shares went down by 11.1%. The company still expects to make the same amount of money, but they say that a slowing global economy and problems between countries could affect how well they do in the future.
Original news source: Maersk cuts 10,000 jobs as shipping demand falls (BBC)
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Group or Classroom Activities
Warm-up Activities:
– News Summary
Instructions: In pairs or small groups, students will read the article and summarize the main points. They should focus on key details such as the number of jobs being cut, the reasons for the cuts, and the impact on the shipping industry. Each group will then share their summaries with the class.
– Opinion Poll
Instructions: Students will form pairs or small groups and discuss their opinions on the job cuts at Maersk. They should consider whether they think the cuts are necessary, the potential impact on the global economy, and any alternative solutions they can think of. After the discussion, each group will present their opinions to the class and take a vote to see which viewpoint is most popular.
– Vocabulary Pictionary
Instructions: Prepare a list of vocabulary words from the article (e.g. shipping, demand, profits, inflation). Divide the class into teams and give each team a whiteboard or large sheet of paper. One student from each team will choose a word from the list and draw a picture to represent it, while their teammates try to guess the word. The team with the most correct guesses wins.
– Pros and Cons
Instructions: In pairs or small groups, students will discuss the pros and cons of the job cuts at Maersk. They should consider the impact on the company, the employees, and the global economy. Each group will then present their arguments to the class, focusing on both the positive and negative aspects of the cuts.
– Future Predictions
Instructions: Students will work individually and make predictions about the future of the shipping industry based on the information in the article. They should consider factors such as global economic trends, technological advancements, and environmental concerns. After making their predictions, students will pair up and discuss their ideas, explaining their reasoning and considering alternative viewpoints.
Comprehension Questions:
1. Why is Maersk planning to cut 3,500 more jobs?
2. How much have Maersk’s profits dropped recently?
3. What caused problems at UK ports when lockdowns ended?
4. Why has the demand for shipping gone down?
5. How much money does Maersk think they will save by cutting jobs next year?
6. What did the CEO of Maersk say about the shipping industry?
7. What will Maersk do with the remaining job cuts in 2024?
8. Why is the cost of shipping going down?
Go to answers ⇩
Listen and Fill in the Gaps:
Shipping company Maersk is (1)______ to cut 3,500 more jobs because there is less demand for their services. This is on top of the 6,500 jobs they already cut earlier this year. Maersk transports goods for big companies like Nike, but their profits have dropped by 92% recently. The cost of shipping goods went up when lockdowns (2)______ and businesses started (3)______ again, which caused problems at UK ports. But now, because of high inflation and (4)______ interest rates, people are spending less money and the demand for shipping has gone down. Maersk (5)______ that (6)______ jobs will save them £600 million next year.
The CEO of Maersk, Vincent (7)______, said that the shipping industry is facing a “new normal” with less demand and prices going back to how they used to be. He also said that rates have been under pressure recently and that there hasn’t been any improvement in ship (8)______ or idling. Maersk will cut 2,500 jobs in the next few months and the rest in 2024, but they haven’t said where or what types of jobs will be affected.
Maersk is one of the (9)______ container (10)______ companies in the world, so their latest results show that the global economy is (11)______ down. The container shipping (12)______ has too many ships right now, which is good for people who need to ship things because it’s cheaper, but it’s bad for the companies that own and operate the ships.
The cost of shipping has gone down a lot recently. It used to cost $18,000 to ship one container, but now it only costs $2,000. This has allowed (13)______ like The Entertainer to lower their prices for customers. When Maersk announced the job cuts, their shares went down by 11.1%. The company still expects to make the same (14)______ of money, but they say that a slowing (15)______ economy and problems between countries could affect how well they do in the (16)______.
Go to answers ⇩
Discussion Questions:
Students can ask a partner these questions, or discuss them as a group.
1. What is the shipping industry and why is it important?
2. How do you think the job cuts at Maersk will affect the employees who lose their jobs?
3. Do you think it’s fair for companies to cut jobs when they are experiencing financial difficulties? Why or why not?
4. How would you feel if you were a customer of Maersk and their prices went up because of the job cuts?
5. Do you think the global economy is getting worse? Why or why not?
6. What do you think are some possible reasons for the drop in demand for shipping services?
7. How do you think the job cuts at Maersk will affect the overall economy?
8. Do you think it’s better for shipping companies to have more ships or fewer ships? Why?
9. How would you feel if you were a shareholder of Maersk and their shares went down because of the job cuts?
10. Do you think the cost of shipping will continue to decrease in the future? Why or why not?
11. What do you think are some possible solutions for the shipping industry’s problems?
12. How do you think the job cuts at Maersk will affect other companies that rely on their shipping services?
13. Do you think it’s important for companies to prioritize profits over job security? Why or why not?
14. How would you feel if you were a competitor of Maersk and they were cutting jobs to save money?
15. Do you think the shipping industry will ever fully recover from the effects of the pandemic? Why or why not?
Individual Activities
Vocabulary Meanings:
Match each word to its meaning.
Words:
1. jobs
2. demand
3. profits
4. shipping
5. inflation
6. interest rates
7. economy
8. prices
Meanings:
(a) Work that people do to earn money
(b) The amount of goods or services that people want to buy
(c) The cost of borrowing money or the return on saving money
(d) The general increase in the prices of goods and services
(e) The act of sending goods from one place to another
(f) The system of producing, distributing, and consuming goods and services in a country
(g) The money a company makes after paying all its costs
(h) The amount of money that needs to be paid for goods or services
Go to answers ⇩
Multiple Choice Questions:
1. Why is Maersk planning to cut more jobs?
(a) There is less demand for their services
(b) They want to save money
(c) They want to hire new employees
(d) They want to expand their business
2. How much have Maersk’s profits dropped recently?
(a) 50%
(b) 75%
(c) 92%
(d) 25%
3. What caused problems at UK ports?
(a) High inflation and rising interest rates
(b) Less demand for shipping
(c) The CEO of Maersk
(d) The cost of shipping goods going up
4. According to the CEO of Maersk, what is the shipping industry facing?
(a) Increased demand and higher prices
(b) A “new normal” with less demand and prices going back to how they used to be
(c) Improved ship recycling and idling
(d) More jobs and higher profits
5. When will Maersk cut the remaining jobs?
(a) In the next few months
(b) They haven’t said
(c) In the next year
(d) In 2024
6. What does the cost of shipping currently allow companies to do?
(a) Lower their prices for customers
(b) Increase their profits
(c) Expand their business
(d) Hire more employees
7. How did Maersk’s shares react when they announced the job cuts?
(a) They went up by 11.1%
(b) They remained the same
(c) They went down by 11.1%
(d) They fluctuated significantly
8. What could affect how well Maersk does in the future?
(a) Increased demand for shipping
(b) A slowing global economy and problems between countries
(c) Lower shipping costs
(d) Improved ship recycling and idling
Go to answers ⇩
True or False Questions:
1. The CEO of Maersk, Vincent Clerc, stated that the shipping industry is facing a “same old” with more demand and prices returning to previous levels.
2. Maersk transports goods for big companies like Nike, but their profits have recently dropped by 92%.
3. This is in addition to the 6,500 jobs they already cut earlier this year.
4. However, due to high inflation and rising interest rates, people are now spending less money, leading to a decrease in demand for shipping.
5. Maersk believes that hiring more employees will save them £600 million next year.
6. The cost of shipping has significantly increased, going from $18,000 to $2,000 per container, which has allowed companies like The Entertainer to raise their prices for customers.
7. Maersk, a shipping company, is planning to increase 3,500 more jobs due to increased demand for their services.
8. The cost of shipping goods increased when lockdowns ended, causing issues at UK ports.
Go to answers ⇩
Write a Summary:
Write a summary of this news article in two sentences.
Writing Questions:
Answer the following questions. Write as much as you can for each answer.
1. Why is Maersk planning to cut 3,500 more jobs?
2. What are some of the big companies that Maersk transports goods for?
3. Why did the cost of shipping goods go up when lockdowns ended?
4. What does the CEO of Maersk mean by the “new normal” in the shipping industry?
5. How has the cost of shipping changed recently and what effect has it had on companies like The Entertainer?
Answers
Comprehension Question Answers:
1. Why is Maersk planning to cut 3,500 more jobs?
Maersk is planning to cut 3,500 more jobs because there is less demand for their services.
2. How much have Maersk’s profits dropped recently?
Maersk’s profits have dropped by 92% recently.
3. What caused problems at UK ports when lockdowns ended?
The cost of shipping goods went up when lockdowns ended and businesses started trading again, which caused problems at UK ports.
4. Why has the demand for shipping gone down?
The demand for shipping has gone down due to high inflation and rising interest rates, which has led to people spending less money.
5. How much money does Maersk think they will save by cutting jobs next year?
Maersk thinks that cutting jobs will save them £600 million next year.
6. What did the CEO of Maersk say about the shipping industry?
The CEO of Maersk, Vincent Clerc, said that the shipping industry is facing a “new normal” with less demand and prices going back to how they used to be.
7. What will Maersk do with the remaining job cuts in 2024?
Maersk will make the remaining job cuts in 2024, but they haven’t specified where or what types of jobs will be affected.
8. Why is the cost of shipping going down?
The cost of shipping is going down because the container shipping industry currently has too many ships, which has led to increased competition and lower prices.
Go back to questions ⇧
Listen and Fill in the Gaps Answers:
(1) planning
(2) ended
(3) trading
(4) rising
(5) thinks
(6) cutting
(7) Clerc
(8) recycling
(9) biggest
(10) shipping
(11) slowing
(12) industry
(13) companies
(14) amount
(15) global
(16) future
Go back to questions ⇧
Vocabulary Meanings Answers:
1. jobs
Answer: (a) Work that people do to earn money
2. demand
Answer: (b) The amount of goods or services that people want to buy
3. profits
Answer: (g) The money a company makes after paying all its costs
4. shipping
Answer: (e) The act of sending goods from one place to another
5. inflation
Answer: (d) The general increase in the prices of goods and services
6. interest rates
Answer: (c) The cost of borrowing money or the return on saving money
7. economy
Answer: (f) The system of producing, distributing, and consuming goods and services in a country
8. prices
Answer: (h) The amount of money that needs to be paid for goods or services
Go back to questions ⇧
Multiple Choice Answers:
1. Why is Maersk planning to cut more jobs?
Answer: (a) There is less demand for their services
2. How much have Maersk’s profits dropped recently?
Answer: (c) 92%
3. What caused problems at UK ports?
Answer: (d) The cost of shipping goods going up
4. According to the CEO of Maersk, what is the shipping industry facing?
Answer: (b) A “new normal” with less demand and prices going back to how they used to be
5. When will Maersk cut the remaining jobs?
Answer: (d) In 2024
6. What does the cost of shipping currently allow companies to do?
Answer: (a) Lower their prices for customers
7. How did Maersk’s shares react when they announced the job cuts?
Answer: (c) They went down by 11.1%
8. What could affect how well Maersk does in the future?
Answer: (b) A slowing global economy and problems between countries
Go back to questions ⇧
True or False Answers:
1. The CEO of Maersk, Vincent Clerc, stated that the shipping industry is facing a “same old” with more demand and prices returning to previous levels. (Answer: False)
2. Maersk transports goods for big companies like Nike, but their profits have recently dropped by 92%. (Answer: True)
3. This is in addition to the 6,500 jobs they already cut earlier this year. (Answer: True)
4. However, due to high inflation and rising interest rates, people are now spending less money, leading to a decrease in demand for shipping. (Answer: True)
5. Maersk believes that hiring more employees will save them £600 million next year. (Answer: False)
6. The cost of shipping has significantly increased, going from $18,000 to $2,000 per container, which has allowed companies like The Entertainer to raise their prices for customers. (Answer: False)
7. Maersk, a shipping company, is planning to increase 3,500 more jobs due to increased demand for their services. (Answer: False)
8. The cost of shipping goods increased when lockdowns ended, causing issues at UK ports. (Answer: True)
Go back to questions ⇧
