IKEA plans 7,500 job cuts in e-commerce push

10
370

STOCKHOLM — Swedish furniture giant IKEA said Wednesday it planned to cut 7,500 jobs worldwide by 2020, mainly office jobs, as it reorganizes to focus its business on e-commerce and smaller shops in city centers.

The job cuts affect almost 5 percent of staff at Ingka Holding, Ikea’s parent group. IKEA is its biggest brand with 367 stores in 30 countries and 160,000 employees.

The decision to cut jobs was “based on how to lead a more simple, effective and efficient” business.

“We have duplicate work throughout the market,” Ingka retail manager Tolga Oncu told AFP.

Jobs will be cut across the globe but stores and distribution units will not be affected, he said.

IKEA on Tuesday announced plans to build its first store in the Philippines, touted to be the largest in the world. It will employ some 500 people, the company said.

IKEA , via Ingka, will at the same time recruit 11,500 people in the next two years to meet the company’s “digital capabilities” and its plans to open around 30 new stores.

The company, famous for its flatpack DIY furniture, has been opening city center shops in response to changing lifestyles, since fewer people own cars.

“The retail landscape is transforming at a scale and pace we’ve never seen before. As customer behaviors change rapidly, we are investing and developing our business to meet their needs in better and new ways,” Ingka chief executive Jesper Brodin said in a statement on Wednesday.

In October, Ingka reported sales of 34.8 billion euros ($40 billion) for its 2017-2018 reporting year, up by 2 percent from the previous year, which it attributed to stronger online sales and store openings.

Ikea stores welcomed 838 million visitors in 30 countries, three percent more than a year earlier.

The company’s web page meanwhile had 2.4 billion visitors, up by 10 percent.

The group also said its “Click & Collect” service, which enables consumers to order online and pick up their products in store, and “TaskRabbit”, which offers buyers at-home assembly help in the US and Britain, were developing well

10 COMMENTS

  1. My brother suggested I would possibly like this website. He used to be totally right. This put up actually made my day. You cann’t believe simply how so much time I had spent for this info! Thank you!

  2. Just wish to say your article is as surprising.

    The clarity for your submit is just excellent and i can suppose you’re knowledgeable on this subject.
    Well along with your permission allow me to snatch your feed to stay up to date with coming near
    near post. Thanks a million and please keep up the gratifying
    work.

  3. Thanks for the good writeup. It in truth used to be a amusement account it.
    Glance advanced to far delivered agreeable from you! By the way, how
    can we keep in touch?

  4. Thanks for a marvelous posting! I really enjoyed reading it,
    you will be a great author. I will make sure to
    bookmark your blog and definitely will come back in the foreseeable future.
    I want to encourage that you continue your great job, have a nice weekend!

LEAVE A REPLY

Please enter your comment!
Please enter your name here