EMCC European Monitoring Centre on Change

Ikea

Company/Organisation:
Ikea

Geographic Location

Country: United Kingdom
Region: Coventry; West Midlands; West Midlands
Location of affected unit(s): Coventry

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.59 - Retail sale of furniture, lighting equipment and other household articles in specialised stores
Number Employed: 352
Group: Ikea

Employment Effects

Announcement Date: 04-02-2020
Planned Job Reductions min: 352
Planned Job Reductions max: 352
Type of Restructuring: Closure
Employment Effect Start: 04-02-2020
Direct Dismissals: 352

Additional Information

Ikea, the Swedish furniture company, has announced that it will close its store in Coventry, in the West Midlands, putting 352 jobs at risk of redundancy. The store is expected to close in summer 2020, following a period of compulsory consultation.

A representative of the company has said that the closure of the Coventry store is important for the long-term success of Ikea in the UK and promised to support the affected employees by offering them redeployment in other UK stores or by supporting them to find new jobs. The company's decision is motivated by the growing economic difficulties in the UK’s high streets and retail sector and expanding share of online shopping.

The Usdaw union said that their priority was to minimise the number of compulsory redundancies.

Coventry City Council officials have also started negotiations with Ikea about supporting employees facing redundancies and utilising the store building. Ikea has been operating in the UK for over 30 years and has 22 stores in the country.

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