COPENHAGEN, Nov 3 (Reuters) – Shipping group A.P. Moller-Maersk (MAERSKb.CO) on Friday reported a steep drop in profit and revenue in the third-quarter, and said it would cut 10,000 jobs as it battles with lower freight rates and subdued demand for container shipping.

The Danish company also kept its full-year guidance for revenue and operating profit but now expects both to land at the lower end of the range.

“Our industry is facing a new normal with subdued demand, prices back in line with historical levels and inflationary pressure on our cost base,” CEO Vincent Clerc said in a statement.

“Since the summer, we have seen overcapacity across most regions triggering price drops and no noticeable uptick in ship recycling or idling,” he said.

The group already in August warned of a steeper decline in global demand for shipping containers by sea this year, due to slow economic growth and destocking in the aftermath of the COVID-19 pandemic.

Maersk said it aims to cut its workforce from 110,000 in January this year to below 100,000, which will result in saving next year of $600 million compared to this year.

A one-time cost of $350 million related to the restructuring would mostly impact its 2023 financial performance, it said.

The company said it expects underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for the year at between $9.5 billion and $11 billion, while underlying earnings before interest and taxes are expected between $3.5 billion and $5 billion.

EBITDA plunged to $1.9 billion in the third quarter from $10.9 billion a year earlier, slightly above analysts’ expectations of $1.81 billion in a Refinitiv poll. Revenues fell 47% to $12.1 billion.

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