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IKEA cuts 850 jobs worldwide to save costs

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IKEA will cut 850 jobs worldwide as it works to reduce costs and simplify its organisation. The company aims to complete the reorganisation by the end of the calendar year. However, it remains unclear whether jobs in the Netherlands will disappear, and Ikea Netherlands has not yet answered questions from the ANP.

Inter Ikea, the part of the company that sets the overall strategy and supports franchisees, will carry out the cuts. The group has its headquarters in Delft and also runs a store in the city. Meanwhile, the Ingka Group manages the other Dutch stores, and that part of the company will not take part in the reorganisation.

Chief financial officer Henrik Elm says Inter Ikea Group has grown “too complex and fragmented”. He explains that 300 of the 850 jobs will disappear in Sweden. “A retail environment requires simplicity and speed,” Elm says. He believes the restructuring will speed up decision‑making and lower costs.

@ANP | News Brainport

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