Ikea to cut 7,500 jobs
Published 12:00 am Thursday, November 22, 2018
Furniture giant Ikea plans to cut 7,500 jobs worldwide as part of a plan to cater more to online customers, the company said Wednesday.
The shakeup at the Swedish firm shows even Ikea — known for its massive suburban stores and affordable assemble-yourself furniture — is not immune to online competition. Most of the job cuts will hit those in office positions including human resources and communications.
Meanwhile, the firm plans to create thousands of new jobs — 11,500, or 4,000 more than it is cutting — by opening 30 new stores in urban centers and by investing in its e-commerce and delivery offerings.
In Wednesday’s statement, Lars Petersson, Ikea’s manager for U.S. retail operations, said the company wants to “create the IKEA of the future by being more accessible and fully embracing technology.”
In a financial report last month, the company said during the 12 months ending Aug. 31 its website drew 2.5 million visits and accounted for only 5 percent of sales.
The same report noted Ikea has been experimenting with retail concepts aimed at expanding beyond the massive suburban stores the company is known for. In the past year, the company has opened smaller showrooms that make sense in city centers or smaller communities.
Ikea has opened temporary pop-up stores and remote pick-up points, which allow customers to order in store or online, then pick up items somewhere closer to home.
Petersson said he expects only about 75 job cuts in the U.S. The company plans to open two stores next year in San Antonio and Norfolk, Virginia, creating about 500 new positions.