IKEA cuts employment. Almost 300 people are unemployed

During the year, the number of IKEA Industry Poland employees decreased by 285 positions. According to the company, it was necessary to adapt employment to the new market realities – reports Dlahandlu.pl.

One of the largest furniture manufacturers in the country, IKEA Industry Poland, ended 2024 with a significant decrease in the number of employees – according to the company's report for the 2024 financial year. During the year, its staff decreased by 285 positions to 8,127 people. The company explains the reductions with the optimization of operational processes, decreased demand for IKEA products and the need to adapt production to new market realities.

The cuts covered most plants, including those in Goleniów, Wielbark and Zbąszynek. The largest drop in employment was recorded in Goleniów, where 165 people lost their jobs, as well as in Wielbark – 82 employees and Resko – 58 employees. The only branch that increased employment was the Service Office, which added 30 people.

Revenues down, profitability up

IKEA Industry Poland is responsible for approximately 50 percent. world production of wooden furniture of the concern. Nearly 20 percent of them are made in Poland.
In the financial year ended August 31, 2024, sales revenues amounted to PLN 5.81 billion, which means a decrease by 2.63%. year to year. However, domestic sales decreased by 3.5%, to PLN 725 million. However, despite the decline in sales, the company improved efficiency. Gross margin increased from 4.69%. to 6.53 percent As indicated in the annual report, the increase in gross profit was the result of a 4.5% decrease in the costs of products, goods and materials sold.

However, the company maintained a high level of investment – over PLN 352 million in 2024. The most important projects included: the construction of the “N” production hall in Zbąszynek for over PLN 57 million, the construction of a photovoltaic farm in the same plant for approximately PLN 47 million, as well as the purchase and installation of production lines – for nearly PLN 22 million.

The furniture industry is in crisis

IKEA Industry Poland's job cuts are part of a broader trend on the furniture market. After the pandemic boom in home furnishings, demand in Europe decreased significantly. In addition, there is the increasingly expensive wood, high electricity prices, high employee maintenance costs and strong competition from Asia. This causes producers to limit the scale of their operations, adapting to new economic conditions.

KW

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