Ikea cites rapid change in the retail sector as it cuts 7,500 jobs worldwide

Ikea will cut 7,500 jobs worldwide over the next two years as it focuses on developing its website and inner-city stores, it said today.

The cuts, which include 350 roles in the UK, will not hit the headcount of Ikea's 160,000 employees worldwide as it also plans to add 11,500 new jobs to its global workforce.

Jesper Brodin, chief executive of Ikea’s holding company Ingka Holdings, said the furniture giant was responding to fast change in the retail sector.

“As customer behaviours change rapidly, we are investing and developing our business to meet their needs in better and new ways,” Brodin said.

The chain, which recently opened new stores in Sheffield and Exeter, said it expects to lose 350 jobs at its UK head office and other supporting units.

“These changes do not impact the majority of co-workers in our stores and distribution units. Instead we will look at how we are organised in our global functions, service office and other support areas,” a spokesperson told City A.M.

However, it will also bring 500 new jobs to Greenwich when it opens a new store in the spring of next year.

Javier Quinones, the head of retail in the UK and Ireland, said: “We recently announced our city centre approach starting with London and we will continue to invest in being more convenient through our enhanced service offer and digitalisation.

“While the opportunities ahead of us are exciting, we know that some of the changes won’t always be easy and in some cases, we will have to make difficult decisions.”

The news comes as Ikea announced its biggest store to date in the Philippines, planned to open in 2020.