Ikea to cut 7,500 jobs around the world over next two years

Furniture retailer to create 11,500 roles in different parts of the business as it deals with move to online and convenience shopping

Ikea plans to make around 7,500 people redundant including 350 in the UK over the next two years as it adapts to changing shopping habits.

The Swedish furniture maker said it was making the changes, which include new town-centre stores and an additional focus on online sales, in order to “remain relevant” to its customers.

A new store scheduled to open in Greenwich in spring will create 500 new UK roles, Ikea said.

The changes are part of global plans that Ikea predicts will see thousands of redundancies but also create 11,500 new jobs.

In the UK, Ikea said it would focus on greater convenience with the first stage of the plan being the recent opening of its new “Planning Studio” on Tottenham Court Road. The retailer also opened two new stores in Sheffield and Exeter in its most recent financial year.

Ikea has been relatively late to the move to online shopping, instead continuing to rely on the large warehouse locations outside of town centres on which its success has been built.

But Ikea is not immune from the broad shift in shopping habits that has seen a host of high street retailers shut stores and shed staff this year.

The company said it had invested heavily in getting products to its customers with three new distribution and fulfilment facilities in the UK.

“We are in a fast-changing retail environment and while we continue to grow, we are evaluating how we can remain relevant in the eyes of consumers – now and in the future,” said Javier Quiñones, Ikea UK and Ireland retail manager.
 
“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.”

Mr Quiñones said the company would consult with workers throughout the transformation to ensure that it is carried out in line with the company’s values.

“We are confident these changes will secure the future of Ikea and will benefit its customers and ultimately its co-workers.”

Ikea, which employs 160,000 people in 30 countries, has prided itself on how it treats its staff. In 2015 the company became the first large retailer in the UK to commit to paying all employees the real living wage.

When big firms reported their gender pay gaps for the first time in the UK this year, Ikea was one of the best performers with a median gap of 6.9 per cent compared to 16.4 per cent across the whole retail sector.

The company also awards all staff, regardless of their position, the same Christmas bonus which amounted to around £1,100 last year.