Posted 21st Nov 2018

Ikea to cut 7,500 jobs in 'business transformation’

By KBBDaily on 21st November 2018 - 15:00pm
career advice, ikea, sweden, ingka group, redundancy, job, kbb, kbbdaily, uk, ireland

Ikea parent company Ingka Group has revealed that around 7,500 staff may be up for redundancy – including 350 in the UK and Ireland – as it moves into a new phase of “business transformation” that will see the furniture giant “simplifying to enable a greater focus on adding value to its customers”.

Over the next two years, 350 of the 12,100 UK and Ireland staff are anticipated to be made redundant, Ikea said. The company recently opened its new Planning Studio in Tottenham Court Road, and also opened new stores in Sheffield and Exeter earlier this year, while the new Ikea Greenwich is set to open in spring 2019, creating 500 new jobs.

Ingka Group has said that 11,500 new jobs will be created globally in the next two years as Ikea opens around 30 new touchpoints, alongside investing in its fulfilment network and digital operations. The group noted that the 7,500 jobs that may be cut are out of the total 160,000 employee network and will be mainly focused on global functions and offices in 30 markets.

“We have been in the UK and Ireland for more than 30 years and Ikea has revolutionised the way people live, and the way people shop,” said Ikea UK and Ireland country retail manager Javier Quinones. “Today it is hard to imagine a home without an Ikea product.

“However, we are in a fast-changing retail environment and while we continue to grow, we are evaluating how we can remain relevant in the eyes of consumers – now and in the future. While the opportunities ahead of us are exciting, we know that some of the changes won’t always be easy and in some cases, we will have to make difficult decisions.”

Quinones added: “Co-workers are at the heart of our business and throughout this transformation we will have an ongoing dialogue on how to navigate these changes, to ensure we do this in a way in line with our values and ensuring that our co-workers feel supported. We are confident these changes will secure the future of Ikea and will benefit its customers and ultimately its co-workers.”

Ingka Group CEO Jesper Brodin said: “We continue to grow and perform strongly. At the same time, we recognise that the retail landscape is transforming at a scale and pace we’ve never seen before. As customer behaviours change rapidly, we are investing and developing our business to meet their needs in better and new ways.”

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