IKEA cuts 850 jobs in global restructuring
Retail giant targets lower costs amid weaker consumer demand
Inter IKEA, the franchiser that manages sourcing and supplies IKEA stores across 63 countries, is cutting about 850 jobs—roughly 3% of its 27,500‑strong workforce—as part of a cost‑saving restructuring aimed at improving efficiency and lowering prices amid weakening consumer demand. The reductions, which include about 300 roles in Sweden where one of Inter IKEA’s main hubs is based, follow two consecutive years of declining sales across the IKEA system and a strategic shift away from large suburban warehouse outlets toward smaller city‑center formats and expanded digital offerings.
Company executives say rising costs, U.S. tariffs and a drop in consumer confidence—exacerbated by recent geopolitical tensions that pushed fuel prices higher—have reduced households’ willingness to spend on non‑essential big‑ticket items like furniture. Inter IKEA’s CFO said the group must shorten decision cycles, cut its cost base and reallocate resources to priority areas such as online retail and supply‑chain optimisation to make products more affordable for target customers.
The move parallels earlier cuts at Ingka Group, IKEA’s largest franchisee, which announced about 800 office‑based job losses, and follows leadership changes across the organisation. Inter IKEA frames the layoffs as part of a broader transformation to streamline operations, accelerate digitalisation and adapt to changing shopping patterns and heightened e‑commerce competition. Analysts view the job reductions as indicative of wider softness in the home‑goods sector, driven by inflation, higher borrowing costs and shifting post‑pandemic demand.
Inter IKEA says affected roles will be handled with transition support and that the measures are intended to preserve long‑term competitiveness while allowing continued investment in stores and online channels. Company statements stress the goal of reducing the cost base so the brand can lower prices and remain accessible to price‑sensitive consumers as it pursues a leaner, faster operating model.
