Ikea to axe 7,500 jobs in latest plan
IKEA has said 350 of its employees in the UK are facing redundancy as part of its global transformation plan.
The Swedish home retailer expects 7,500 jobs to be cut across its operations as it simplifies the organisation.
Javier Quinones, country retail manager for Ikea in the UK and Ireland, said the company had to make difficult decisions as it adapted to a “fast-changing retail environment”.
“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,” he added.
“We are confident these changes will secure the future of Ikea and will benefit its customers and ultimately its co-workers.”
The company, which has stores in Bristol and Exeter, also said it would create 11,500 jobs over the next two years through new openings and investment in delivery and digital operations.
This includes 500 new jobs at the UK’s newest store in London’s Greenwich, which is due to open next spring.
The UK capital is also home to a new Planning Studio on Tottenham Court Road, as part of a push towards opening smaller format stores in city centres.
However, in May the group ditched plans to build a store near Preston amid uncertainty on the British high street as retailers are hammered with soaring costs.
Ikea had planned to open the store in 2020, creating 350 jobs.
Jesper Brodin, chief executive of Ikea’s global parent company Ingka Group, said the retailer had to adapt to changing customer behaviour.
“We will put greater emphasis on making our existing stores even better and taking the opportunity to renew and reinvent our business in a way that is inspired by our history, culture and values.”