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Companies IKEA intends to cut 5% of staff, mainly from the administration



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The IKEA Group intends to cut 7500 employees over the next two years, mainly in the company's administrative centers. At the same time, the company intends to focus on digitizing its services and offering its goods in the middle of major city centers, Financial Times and Reuters reported. The Swedish company plans to create 11,500 new jobs for the same period.

IKEA goes through the evaluation and transformation of its current services. Chief executive of the company, Jesper Brodin, said the many investments had led to duplication of activities over the years. Therefore, the Swedish household furniture and household goods chain will be split by around 5% of staff, with the exception mainly in administrative posts. The CEO emphasized that the redundancies would not be targeted at stores and warehouses.

The Swedish group has 367 shops around the world, including Bulgaria, and its business continues to grow. According to Brodin, the current transformation is to change consumers' wishes and expectations quickly. The company will aim to digitize and deliver online services easier. At the same time, IKEA plans to build shops in central locations in 30 major cities around the world. The CEO promised that these transformations would create 11,500 jobs in the same period as redundancies. IKEA Group also promises full support for employees "in this difficult time".

In fact, IKEA will move away gradually from an existing business model of large warehousing, which has located outside cities. Digitizing and a greater focus on online shopping reflects the impact that platforms like Amazon have on the general business sector.

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