IKEA to cut 7,500 jobs and upgrade e-commerce
Written by Hannah McGrath
IKEA is to upgrade its e-commerce platform as part of a wide-ranging global transformation programme that could result in 7,500 jobs being axed in the next two years.
The Swedish furniture giant announced that the transformation plans could result in staff being made redundant, mainly in global functions and offices in 30 markets.
Meanwhile 11,500 jobs will be created by the launch of 30 new IKEA touchpoints - an app and data management system that supports the IKEA family card - along with further investment in the company’s digital capabilities and fulfilment network. The company has a global workforce of 160,000.
The plan is aimed at improving convenience and affordability for IKEA customers as shopping behaviours change.
Earlier this month, the company partnered with digital insight company ContentSquare to enable staff to access customer website insights at speed.
Jesper Brodin, chief executive of IKEA’s parent company Ingka Group, said: “We recognise that the retail landscape is transforming at a scale and pace we’ve never seen before. As customer behaviours change rapidly, we are investing and developing our business to meet their needs in better and new ways. “
He added that the company continued to grow and perform strongly, but that it would now focus on improving existing stores and its city centre showroom model and would seek to “reinvent” the business in a way inspired by its history, culture and values.
The company recently said it was pushing ahead with plans to open the new store in Greenwich in spring 2019, which will create 500 new jobs.
Javier Quiñones, IKEA UK and Ireland country retail manager, said: “We are in 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.
“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,” he added.
Yesterday the company reported 58.9 per cent growth in fiscal year net profit along with an 11.5 per cent jump in revenues. However, after adjustments from acquisitions, profits dropped by around 12 per cent.