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File photo shows a Maersk Supply Service vessel operating at an offshore wind farm

Photo courtesy Maersk Supply Service

Maersk Supply Service to Cut Jobs as it Shifts Focus to Offshore Wind and OSVs

Mike Schuler
Total Views: 3125
August 28, 2023

Maersk Supply Service will lay off around 130 people over the next two years as it scales down its operations to focus on offshore wind and offshore support vessels.

The company says the plan will help improve profitability and synergies by focusing on fewer business areas and regions. Offshore wind and OSVs will be its two core business areas going forward.

“We will build scale in the markets we operate to become more competitive,” says CEO of Maersk Supply Service, Christian Ingerslev. “To do this we will focus on the most attractive future markets with the best fit for Maersk Supply Service. Building on our current strong position, we will create value for our customers and together secure energy supply and support the energy transition.”

The changes come amid improvements in the offshore vessel market and as the energy transition continues to accelerate. The company says it will concentrate on expanding its offshore wind turbine installation and subsea services businesses, leveraging its modern fleet, skilled crew, and innovative approach.

“Within offshore wind, governments are setting ever higher offshore wind targets. Developers are moving quickly to secure ports, turbines and vessels to support these goals, while at the same time vigilantly keeping cost down,” says Ingerslev. “We have a unique and innovative design for offshore wind turbine installation that has the potential to revolutionise the way offshore wind farms are installed and help meet offshore wind targets faster. Our ambition is to play an active role in growing and accelerating the energy transition.”

As part of the transition, Maersk Supply Service says it will no longer enter new turn-key solutions projects due to the balance between risk and reward not meeting financial expectations and the company lacking the scale needed to mitigate risks. The company will continue to support offshore asset towing, mooring, and installation on a time-chartering basis and will honor its commitments to its project backlog.

The company will also relocate two vessels from Australia to focus its fleet on the Atlantic Basin and North Sea after fulfilling current contracts.

As a result of the new strategy, the company downsize the organization, affecting around 130 people onshore and offshore over the next two years, subject to consultation processes in the UK.

The management team will be restructured around the two new core business areas of offshore wind and OSVs, with Jonas Munch Agerskov taking on the role of Executive Vice President for Offshore Wind and Michael Reimer Mortensen joining as new Chief Commercial Officer for the OSV business.

“Maersk Supply Service has been on a transformational journey since 2016 to explore new business opportunities after the downturn in the OSV market. The company has added many different areas to its business, all relevant at the time. Now it is time to select the areas with the highest potential for Maersk Supply Service. The organisation has built up valuable knowledge along this journey, and I would like to give my sincere thank you for huge effort and commitment to all that has taken part of this journey and especially to the colleagues that we now have to say goodbye to,” added Ingerslev. 

A.P. Moller–Maersk this year divested Maersk Supply Services to A.P. Moller Holding, owned by the A.P. Moller Foundation. The divestment marked the final step in Maersk’s strategic restructuring that it initiated in 2016 and involved the divestment of its energy-related businesses to focus of transportation and integrated logistics. Maersk Tankers, Maersk Oil & Gas and Maersk Drilling were divested between 2017 and 2019. Headquartered in Lyngby, Denmark, it has over 1,000 employees both onshore and offshore and owns more than 30 vessels and one Wind Installation Vessel under construction.

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