Inter Ikea Group announced it is cutting 850 jobs as it focuses on increasing sales growth, reducing prices and boosting traffic across its channels.
“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,” Inter Ikea Group CFO Henrik Elm said in a statement.
The company aims to complete the job cuts by the end of the year and expects about 300 affected positions to be in Sweden. Inter Ikea Group did not immediately respond to questions regarding what roles and departments are impacted or whether affected employees will receive severance or other benefits.
The staff cuts “will enable faster decision-making [and] lower costs, improving our ability to offer lower prices for customers,” according to Elm.
The announcement comes about two months after Ingka Group — the largest franchisee of Ikea — said it could cut up to 800 jobs within its Group Functions.
At the time, Ingka Group CEO Juvencio Maeztu said the job cuts were “driven by our purpose” rather than maximizing profit.
In its latest fiscal year, Inter Ikea Group reported total revenues inched down slightly to 26.3 billion euros from 26.5 billion euros in 2024. Revenues include wholesale sales to Ikea retailers, retail sales and franchise fees.
Profits took a hit during the period, with operating income falling 26% year over year to 1.7 billion euros and net income declining about 32%.
Inter Ikea Group started the year with new leadership as Jakub Jankowski took the helm. Jankowski, who joined Ikea in 2001, succeeded Jon Abrahamsson Ring, who had been CEO since 2020.
The job cuts at Ikea also come as the broader home sector of retail faces challenges, including a weak housing market, low consumer confidence and tariff policies.
The company has been working to expand its touchpoints with customers through new store openings and a partnership with Best Buy. The two retailers last summer began piloting Ikea shop-in-shop concepts within select Best Buy stores. The partnership expanded last week as Best Buy opened consultation spaces within two Ikea stores.
