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IKEA to cut 7,500 jobs globally by 2020, Southeast Asia not to be affected

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Ingka Group, the IKEA franchisee that owns and operates 367 stores in the United States, Europe and some parts of Asia, has announced plans for “assessing all parts of the organisation and is simplifying to enable a greater focus on adding value to its customers.”

This will entail the cutting of 7,500 jobs worldwide by 2020, mainly focusing on global functions and offices in 30 markets, in a press release. At the same time, Ingka Group will open around 30 new IKEA touchpoints, step up investments in fulfilment and digital capabilities, and create 11,500 new jobs to support its business transformation.

Jesper Brodin, chief executive officer, Ingka Group, said: “As customer behaviours change rapidly, we are investing and developing our business to meet their needs in better and new ways. We will put greater emphasis on making our existing stores even better and taking the opportunity to renew and reinvent our business in a way that is inspired by our history, culture and values.”

ALSO READ: IKEA MD swears by the Swedish-inspired ‘fika’ for team building

In a statement to Human Resources, a representative from IKEA Southeast Asia said that this announcement does not affect IKEA’s plans or employees in the region, noting that this is a region where “economies are growing and more and more people are joining the middle class – and improving their lives at home.”

The spokesperson said: “IKEA Southeast Asia, which is owned by Ikano, with IKEA stores in Singapore, Malaysia and Thailand, will be opening a new IKEA store in Penang in March 2019, and in the Philippines in 2020. As IKEA expands in Southeast Asia, the company will also be hiring more staff.”

ALSO READ: Bombardier to cut 5,000 jobs by mid-2020

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