KEY POINTS

• Maersk, a bellwether for global trade, said Friday it was facing subdued demand and inflationary pressures.

• Profits for the company have plunged from last year's record highs as elevated freight prices cool.

• Shares of the company plunged to their lowest level since October 2020.

Shipping giant Maersk, a bellwether for global trade, on Friday announced plans to reduce its workforce by more than 10,000 people and said it expected profit to be at the low end of prior guidance.

The company's Denmark-listed shares had fallen 18% by early afternoon to their lowest level since October 2020.

"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, adding that overcapacity in most regions had driven down prices.