Ingka Group, the company that operates the majority of IKEA stores, is now changing its structure to focus on its core business for an integrated experience between physical stores and e-commerce. To achieve this, resources are being redirected to the digital offering, automation and logistics solutions together with third-party actors.
The restructuring will result in Ingka Group eliminating 800 roles globally, of which 480 are within global functions in Sweden. The aim is to create a faster organization that can reduce costs, which in turn will lead to cheaper products for consumers.
We have become too complex in a retail environment that requires speed and flexibility, says Juvencio Maeztu, CEO of Ingka Group. Simplicity is one of our values and with this we are placing simplicity at the center of how we are organized, how we work and how we lead our business. The change is driven by our vision – not by maximizing our profit. It is about creating the right conditions to grow and lower prices, while remaining committed to our vision of creating a better, more affordable and sustainable everyday life for the many people.
Investments in Technology and Personnel
The company states that it will help the affected staff find solutions during the process. They also plan to allocate resources to skills development to prepare the workforce for the future landscape of retail. In terms of capital, over €2.1 billion has been used in recent years to lower prices.
Environmental initiatives are also part of the strategy, with €4.2 billion already invested in renewable energy and a target of €7.5 billion by 2030.
Decisions like these are never easy and we will do our utmost to support our employees in the best possible way during a time of change, says Juvencio Maeztu. At the same time, we will invest in skills development and transition, so that we have the right skills to develop the IKEA of the future.
Focusing on New Store Concepts
Since 2020, the number of stores has increased from 375 to over 640 spread across 32 countries. During the last fiscal year alone, 54 new units were opened. A new format aimed at smaller towns in the US and Europe is also being tested. Up to 20 such stores are planned before September 2026, which is expected to generate around 500 jobs. This format is intended to be more cost-effective and faster to establish than the traditional stores.
In parallel, IKEA Sweden is adapting its workforce to new customer behaviors. This results in 145 employees being notified of redundancy. This concerns staff at the headquarters in Helsingborg, employees working with sales to companies, and office workers at the warehouse in Torsvik.
Retail is constantly changing and customers' needs and expectations of IKEA look different today than they did just a few years ago, says Michael Parker, acting CEO of IKEA Sweden. We need to be flexible in how we adapt to the outside world to remain relevant. Our employees are our greatest asset and as we now face restructuring our organization, it is with great care and respect for the fact that employees are affected.
In total, 625 roles will disappear in Sweden, 480 positions within the parent company Ingka Group's global operations and 145 positions within IKEA Sweden.