Our website uses cookies

Cookies enable us to provide the best experience possible and help us understand how visitors use our website. By browsing Retail Design World, you agree to our use of cookies.

Okay, I understand Learn more

IKEA to cut 7,500 store jobs to focus on smaller urban stores and ecommerce

IKEA has announced thousands of store-based job cuts as it enters the next stage of its business transformation project. The retailer is to focus on smaller city centre stores and e-commerce for future growth.

Around 7,500 jobs are to be cut worldwide, with 11,500 new roles to be created in other areas. The company employs a total of 160,000 people in total.

Around 350 of the roles made redundant over the next two years will be in the UK, where IKEA plans to create 500 new roles at a new store in Greenwich, due to open during 2019. IKEA employs 12,100 people in the UK.

“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,” says Jesper Brodin, CEO of IKEA parent company Ingka Group.

“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. Our values guide our work and build our inclusive, open and honest culture. It’s all based on a spirit of togetherness and enthusiasm and we will continue to transform with that spirit.”

Ikea's urban store in Madrid
Ikea's urban store in Madrid

IKEA’s recent UK store openings have been in Sheffield and Exeter, and at its new Planning Studio format on Tottenham Court Road in London.

“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. Today it is hard to imagine a home without an IKEA product,” says IKEA UK and Ireland country retail manager Javier Quinones. “However, we are in 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. We recently announced our City Centre Approach starting with London and we will continue to invest in being more convenient through our enhanced service offer and digitalisation.” 

 Quinones adds: “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. 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.”

What’s Hot on Retail Design World?