Inter Ikea Group to Cut 850 Jobs to Reduce Costs

Inter Ikea Group to cut 850 jobs

Inter Ikea Group, the holding company that controls Ikea and employs 27,700 people, will cut 850 jobs in a move intended to improve “simplicity and speed” while lowering costs, the company said in a statement on Monday.

“Despite many positive achievements, 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 primarily brings together support functions. It owns the brand, develops the Ikea product range and handles sourcing alongside franchise partners.

Sweden job cuts and organisational changes

Of the 850 roles being removed, 300 will be in Sweden. The group aims to have the new organisation in place by the end of the year.

“With clear objectives and fewer priorities, a simplified organisation will enable faster decision-making, lower costs and a stronger ability to offer customers lower prices,” the chief financial officer added.

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

Ikea Portugal responds to the global restructuring

In March, Ingka Group, which encompasses almost all Ikea franchise operations, announced 800 job cuts, likewise aimed at simplifying its organisation and reducing 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 followed, and often anticipated, this global movement by making the best possible use of our structure, resources and costs, adapting them to a period of constant change and increasing volatility,” she said.

“Throughout this year, we have already been updating our structure. In all these cases, naturally, some positions are phased out and others are created, and an individual plan is put in place for each of these people so that they can find a new role,” Domingues said, without specifying whether Portugal is included in the plan for 850 job cuts.

Ikea, the Swedish furniture company with operations in Portugal, reported a 32% drop in net profit to €1.5 billion in the 2024/25 financial year, which ended at the end of August.