EMCC European Monitoring Centre on Change

Ikea

Company/Organisation:
Ikea

Geographic Location

Country: World
Location of affected unit(s): Sweden, UK + 28 countries

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: 160000

Employment Effects

Announcement Date: 21-11-2018
Planned Job Reductions min: 7500
Planned Job Reductions max: 7500
Type of Restructuring: Internal restructuring
Employment Effect Start: 23-11-2018
Foreseen End Date: 01-01-2020
Planned Job Creation: 11500

Additional Information

Swedish furniture giant retailer Ikea has announced 7,500 job cuts around the world as Ikea has to adapt to rapidly changing consumer trends. According to Ikea's parent company Ingka, the job cuts represent about 5% of its 160,000 workforce and will mainly affect its offices and 'global operations' across 30 countries. 

Ikea, via Ingka, will simultaneously recruit 11,500 people within two years to respond to digital opportunities and the opening of outlets in city centres. Finally, the reorganisation could lead to a net job creation of 4,000 positions. This strategy responds to a change of lifestyle observed as 'fewer people' have a car and 'more and more people are moving into smaller homespaces', according Ingka's CEO. The group has already announced this year 700 job cuts at EU level. In November 2018, national level announcement have been made in Sweden (650 job cuts), in the UK (350 job cuts), and in Belgium (100 jobs).

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