Our website uses cookies

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

Okay, I understand Learn more

Ikea cuts 7,500 jobs to focus on eCommerce and small-format urban stores

Ikea is ramping up its transformation efforts with plans to increase the number of small-format city stores in its portfolio and improve its eCommerce platform. The retailer has said 11,500 new jobs will be created around the world over the next two years, but up to 7,500 jobs could be made redundant out of a total of 160,000. Redundant roles will be in global functions and offices in 30 markets. The retailer expects to cut 350 jobs out of its 12,100 UK headcount.

The home retailer has said up to “30 new Ikea touchpoints” will be created in the next couple of years, although it is not clear whether these touchpoints would be smaller stores or formats similar to Ikea’s new Tottenham Court Road ‘Planning Studio’. Customers visiting this store cannot buy items directly, but use in-store tools to browse and design kitchens and bathrooms, while ordering products and fittings online.

The retailer said it was still “trailing and testing concepts” for its urban store rollout.

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,” said Jesper Brodin, CEO of Ingka Group.

“As customer behaviours change rapidly, we are investing and developing our business to meet their needs in better and new ways. 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.”

Over the last year Ikea has opened two new stores in Sheffield and Exeter in addition to its ‘Planning Studio’ on Tottenham Court Road. A new store is also due to open in Greenwich next year. The retailer has also recently invested in two new fulfilment centres as well as a smaller distribution unit in London.  

Javier Quinones, Ikea UK and Ireland country retail manager, added: “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. However, we are in a 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.”

What’s Hot on Essential Retail?