Ikea Cuts 850 jobs in global restructuring to simplify operations

Yesterday 15:45

The Swedish furniture giant IKEA has announced plans to cut 850 jobs worldwide as part of a broader restructuring aimed at simplifying its organizational structure and reducing costs.

The job reductions will affect both Sweden and international operations, with around 300 positions expected to be eliminated in Sweden alone. The company said the restructuring process is expected to be completed by the end of the year.

The decision comes from Inter IKEA Group, the holding company responsible for brand development, product design, and global supply coordination. The group employs tens of thousands of workers and plays a central role in managing IKEA’s global operations and long-term strategy.

Company executives stated that the organization has become too complex and fragmented, slowing down decision-making processes in an increasingly competitive retail environment. The restructuring aims to create a simpler structure that allows faster responses to market demands.

According to management, a more streamlined organization will help reduce operational costs and support IKEA’s long-term goal of offering more affordable products to consumers while maintaining profitability.

This move follows earlier job reductions announced in March within IKEA’s franchise operations, where additional positions were cut as part of similar cost-saving measures.

The furniture retailer has faced financial pressure in recent years due to rising costs, global economic uncertainty, and increased investment in price reductions aimed at maintaining customer demand. Although sales volumes have shown some growth, profitability has declined due to competitive pricing strategies.

Despite the layoffs, IKEA executives insist that the company remains committed to its long-term vision of affordability, sustainability, and global expansion in the home furnishing market.