Sweden-based global furniture giant, IKEA has announced to cut jobs under its major restructuring efforts.
Around 150 jobs will be majorly impacted in Sweden and a few in Belgium and the Netherlands as well.
The job cut at IKEA is aimed to prepare the retailer to compete against the e-commerce players. The announced sacking is likely to take place in human resources, sustainability, marketing and communication departments. However, the exact number of job loss is not yet clear.
A company official reportedly stated that with this intervention, IKEA expects to maintain its lead over Amazon, which introduced two private furniture labels last year, India-based Flipkart and Germany-based Otto and Home24.
“IKEA may have been reluctant to get involved in the e-commerce business, but the furniture company is now making up for lost time by investing heavily in developing its digital services and building distribution centres for e-commerce,” the official added.
The job cut has been announced contrary to its plans that focusses heavily on opening new stores and expanding its base.
Headquartered in the Netherlands, the home furnishings retailer is known for designing and selling ready-to-assemble furniture, kitchen appliances and home accessories, has been the world’s largest furniture retailer since (at least) 2008.
The retailer attracts customers with its modernist designs. It currently operates more than 400 stores in 51 countries across the globe.
It has been focussing on increasing its global presence whether it is Asia, Europe or the USA. Recently, it opened first ‘Hej Home’ in the Indian city of Hyderabad. The retailer is all set to open its debut store in India this year.
