Inter Ikea Group to cut 850 jobs to reduce costs

Inter Ikea Group, the holding company that controls Ikea and employs 27,700 people, will cut 850 jobs as part of a drive for "simplicity and speed" and lower costs, the company said in a statement on Monday.

"Despite many positive achievements, the Inter Ikea Group has become too complex and fragmented in a retail environment that demands simplicity and speed," said the group’s chief financial officer, Henrik Elm, as quoted in the statement.

Inter Ikea Group to cut 850 jobs

Inter Ikea Group primarily brings together support functions. It owns the brand, develops the Ikea product range and handles sourcing in partnership with franchise operators.

Of the 850 jobs being eliminated, 300 will be in Sweden, with the group aiming to have its new organisational structure in place by the end of the year.

"With clear goals and fewer priorities, a simplified organisation will enable faster decision-making, lower costs and a better ability to offer customers lower prices," the finance director added.

Henrik Elm also said the new strategy would help safeguard Ikea’s competitiveness for many years to come.

Earlier Ikea franchise job cuts

In March, Ingka Group, which includes almost all Ikea franchise operators, announced 800 job cuts, likewise intended to simplify the organisation and reduce costs.

Asked by Lusa, Ikea Portugal’s communications director, Cláudia Domingues, said: "A reorganisation of our global management structure was recently announced, with the aim of bringing it closer to the different markets and their respective needs."

"In Portugal, we have been following, and often anticipating, this global movement by making the most efficient use of our structure, resources and costs, adapting them to a period of constant change and growing volatility," she said.

"Throughout this year, we have already been updating our structure. In all of these cases, positions naturally cease to exist and new ones are created, and each of these people has an individual plan designed to help them find a new role," Cláudia Domingues said, without specifying whether Portugal is included in the plan for 850 cuts.

Ikea, the Swedish furniture retailer with a presence in Portugal, reported a 32% fall in net profit to €1.5 billion for the 2024/25 financial year, which ended in late August.