The Ingka Group announced a plan to reduce the employment of office workers. The owner of IKEA stores explains himself the need to reduce costs and the need to simplify the organizational structure.
The layoffs are to cover nearly 800 full-time positions, mainly in Sweden, Norway and the Netherlands. It is unclear which positions will be eliminated, but the decision mainly affects office workers, not store workers.
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Layoffs at IKEA. There is a decision
The management board of the Ingka Group indicates that sales in stores have been falling for two years. So the company wants to change its strategy and focus on more small shops in cities and suburbs.
Simplifying the structure will allow for faster decision-making and further cost reductions – explains the CEO of the Ingka Group, Juvencio Maeztu.
The furniture industry has been going through a crisis for some time. Within two years, nearly 20,000 people lost their jobs. people. The layoffs were carried out by Zorka, which produces equipment for the IKEA chain.
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