Ikea Franchisor to Cut 850 Jobs
The holding company said the cuts will support simpler operations and a push to raise sales, lower prices and increase store visits.
- On Monday, Inter Ikea Group announced it is cutting 850 jobs from its 27,700-employee workforce to simplify its organizational structure in a fast-paced retail environment.
- Henrik Elm, chief financial officer of Inter Ikea Group, said the organization had grown 'a bit too complex and too fragmented,' prompting plans to increase sales growth and reduce prices.
- Of the 850 positions being cut, around 300 will be in Sweden 'based on current plans,' Inter Ikea said, adding that the 'final impact' would be confirmed as the process progresses.
- Ingka Group, which owns most Ikea franchises and employs 166,000 people in 37 countries, announced in March that it also was restructuring, with up to 800 positions potentially cut.
- Preceding these cuts, Inter Ikea reported a 32 percent drop in annual profit in November, with sales falling one percent to 44.6 billion euros for the year ending in August.
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42 Articles
The world's largest furniture retailer IKEA is going through one of the most difficult periods in its more than 80-year history. It faces stagnant sales, rising costs and increasing competition from online marketplaces such as Amazon, Temu and Shein. As a result, parent company Inter IKEA is laying off 850 employees.
Ikea is going to fire 850 workers in a cost reduction campaign, as consumer demand falls and the retail giant from large blue stores...
Inter Ikea Group, the holding company that oversees Ikea and has 27,700 employees, will remove 850 jobs in Sweden and around the world to gain "simplicity and speed", and achieve savings.
IKEA’s Low-Price Push Now Includes 850 Job Cuts
Inter IKEA Group plans to cut approximately 850 jobs as the company behind the IKEA brand works to simplify operations, lower costs, and focus more directly on customers. The company said the cuts are part of a broader plan to focus on three priorities: growing sales, significantly reducing prices, and increasing customer visits across IKEA retail formats. “Despite many positive achievements, Inter IKEA Group has grown a bit too complex and too …
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