IKEA’s Big Shake‑Up: Jobs, Stores, and a Digital Twist
What’s the headline? Swedish furniture giant IKEA will cut 7,500 jobs worldwide by next year, mainly in office roles. The move is part of a plan to streamline the business, bring e‑commerce to the forefront, and brighten up city‑centre shops.
Who’s hitting the job market?
That means almost 5 % of the bench at Ingka Holding – the group that owns the yellow‑and‑blue brand – will be looking for fresh opportunities elsewhere. The company sports 367 stores in 30 countries and a workforce of 160,000.
Why the cuts?
- Too many duplicate tasks across global markets – “We have duplicate work everywhere,” says retail manager Tolga Oncu.
- Move to a simpler, more efficient structure.
- Focus more on digital capabilities and short‑form city shops.
No Store Closure Rumors
Rest assured, no stores or distribution units will be affected. Those points of sale will continue to welcome customers and offer clicks‑and‑collect.
Hiring Hair‑Pie and Tech‑Tips
While the company trims its office staff, it’s on the hunt for 11,500 new hires in the next two years. These will help boost online sales and support the launch of roughly 30 new stores.
Numbers That Make the Story: FY 2017‑2018 Highlights
Sales – €34.8 billion (S$54 billion), up 2 % from the previous year, thanks to stronger online channels and fresh store openings.
Visitors – IKEA stores welcomed 838 million guests across 30 countries, a 3 % rise from last year.
Web Traffic – the site attracted 2.4 billion hits, a decade of growth in one go.
The Service Parade
Both Click & Collect (order online, pick up in‑store) and TaskRabbit (in‑home assembly help in the US and UK) are performing well and growing in popularity.
CEO’s Snap‑Shot
Jesper Brodin, Ingka’s CEO, says: “The retail landscape is changing faster than a spring chicken. We’re investing in new ways to meet customer needs, in real time and with a smile.”
Bottom Line: From Flattened Furniture to Flat‑Taxed Offices
IKEA’s storyline is one of cutting the shelves where it can, but building the digital decks where it can’t. With a tidy rollout of city shops and a focus on online growth, the company is primed to keep the world’s furniture lovers happy while the old office crew moves on to new adventures.
