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DIY

Ikea’s ‘business transformation’ leaves 350 UK and Irish jobs at risk

DIY giant Ikea has announced that 350 jobs, out of the 12,100 UK and Ireland roles, may be made redundant during the next two years as part of its ‘business transformation’.

Ikea’s owner, Ingka Group, said its transformation plan is “assessing all parts of the organisation” and is simplifying it to enable a “greater focus on adding value to its customers”.

Despite the potential redundancies the group said in the coming two years “11,500 new jobs will be created globally”, through opening around 30 new Ikea touchpoints, investments in its fulfilment network and in digital capabilities.

In the UK and Ireland, the retailer opened two new stores in Sheffield and Exeter, and has also recently opened its new planning studio on Tottenham Court Road, the first step in its ‘City Centre Approach’, starting with London.

Jesper Brodin, CEO of Ingka Group, said: “We continue to grow and perform strongly. At the same time, 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.

“We will put greater emphasis on making our existing stores even better and taking the opportunity to renew and reinvent our business in a way that is inspired by our history, culture and values. Our values guide our work and build our inclusive, open and honest culture. It’s all based on a spirit of togetherness and enthusiasm and we will continue to transform with that spirit.”

Javier Quinones, IKEA UK and Ireland Country retail manager, added: “We have been in the UK and Ireland for more than 30 years and IKEA has revolutionised the way people live, and the way people shop. Today it is hard to imagine a home without an IKEA product. However, 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.

“We recently announced our City Centre Approach starting with London and we will continue to invest in being more convenient through our enhanced service offer and digitalisation. 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.”

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