IKEA owner to cut 800 office roles
Ingka Group, the company behind IKEA, has announced that it could cut around 800 roles across its group functions as it looks to focus more on its core retail business.
In a statement, the company said it will be simplifying its organisation while investing in new and existing IKEA stores and advancing its digital capabilities.
Ingka Group has spent more than €2.1 billion in lowering prices and supporting consumers in recent years, while also opening new locations and optimising existing ones, through automation, improving logistics and piloting partnerships with third-party retailers.
Subscribe to TRBThe company said the new structure puts stores at the heart of its omnichannel business. However, this means that 800 roles may become redundant across group functions.
Juvencio Maeztu, chief executive of of Ingka Group, said: “We have grown too complex in a retail environment that requires speed and agility. Simplicity is one of our core values, and with this step, we are putting it at the centre of how we organise, work and lead the company.
“This change is driven by our purpose – not to maximising profit. It is about bringing our focus and decisions closer to our customers and the co-workers who serve them every day.
“This step will create the right pre-conditions to grow and lower prices while staying true to our vision of creating a better and more affordable and sustainable everyday life for the many people.”
Since 2020, the company has grown from around 375 stores to more than 640 customer meeting points across 32 countries. It has recently announced that it will be piloting new IKEA stores in smaller cities and suburban areas in North America and Europe. It is planning to open up to 20 new sites by September which will create 500 new roles.
