Ikea announces that it will eliminate 7,500 jobs worldwide

The Swedish furniture chain Ikea announced on Wednesday that it could eliminate up to 7,500 jobs worldwide in the next two years, as part of a process of transformation of the company.

Ingka Group, the company that accounts for 90% of Ikea’s sales, will create 11,500 new jobs at the same time, in a plan that includes new stores, extensive investments in digitalization and an increase in capacity.

“We are going to introduce a new organization, better adapted to satisfy our customers, to make it possible, we need to improve our way of working, directing and organizing ourselves,” IkeaSuecia director Håkan Svedman said in a statement.

The Swedish chain specified that not all countries will be affected in the same way by the measures, which will mainly affect central offices and services.

The Swedish group has a staff of 160,000 employees spread across thirty markets. Ikea sales increased to 38,800 million euros in the last fiscal year (September 2017-August 2018), with a year-on-year increase of 4.5%.

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