Inter Ikea Group, the holding company overseeing Ikea, is cutting 850 jobs, with about 300 positions in Sweden based on current plans. The company says the reductions are needed to simplify a structure that has become too complex and fragmented for a retail environment requiring simplicity and speed. The group plans to focus on three goals: increasing sales growth, significantly reducing prices, and boosting visitation across customer meeting points. The final impact of the job cuts will be confirmed as the process progresses. In its 2024-2025 financial year, annual profit fell 32 percent due to lower prices and higher costs linked to US tariffs, while sales volume and store visitors increased.
"“Despite many positive achievements, Inter Ikea Group has grown a bit too complex and too fragmented in a retail environment that requires simplicity and speed,” Henrik Elm, chief financial officer of Inter Ikea Group, said in a statement."
"“Increase sales growth, significantly reduce prices, and boost visitation across customer meeting points.”"
"Of the 850 staff positions being cut, around 300 will be in Sweden “based on current plans”, Inter Ikea said, adding that the “final impact” would be confirmed as the process progressed."
"In November, Inter Ikea reported a 32 percent drop in annual profit for its 2024-2025 financial year as it lowered prices to boost sales and faced higher costs due to US tariffs. Sales for its year ending in August fell by one percent to 44.6 billion euros ($51.9 billion), but sales volume increased by 2.6 percent and the number of store visitors rose by 1.9 percent."
Read at www.thelocal.se
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