Business General News

Ikea to trim down 7,500 jobs, plans smaller stores globally

Ikea, the home décor and furniture chain, recently stated that it is going to reorganize its business at a global level. This will eventually help the business reach more customers via smaller and more centralized stores. This news comes after the company noticed several changes in the behavior of the customer.

The first action in line by the Ingka Group, the one that operates and owns a major part of Ikea stores, shall start with cutting down of the global workforce by five percent which amounts to 7,500 people. The company shall eventually move towards stores that are smaller with more choices in terms of online shopping.

Jesper Brodin, Ingka Group CEO mentioned that the company noticed an undeniable transformation in the overall retail landscape at a pace that is hard to pass by. As the behaviors of the customers change at a rapid pace, the company has been developing and investing in the business to meet the needs of the customers in newer and better ways.

A major faction of job cuts will come from support areas and administrative section. However, the company also plans the creation of 11,500 jobs while it expands in terms of smaller and new stores that shall be devised all around the globe.

Ingka has 367 stores for its Ikea based business all around the globe with 160,000 people employed in the same. To sum it up, Ikea has a total of 208,000 employees on a global level with more jobs to surface post implementation of changes.