Inter IKEA cuts 850 jobs to lower prices

Inter IKEA, the rights holder and franchisor of the well-known Swedish home furnishings chain, is cutting costs to lower prices as consumer confidence continues to decline.

“Affordability more relevant than ever”

Inter IKEA is cutting 850 jobs worldwide—about 3% of its total workforce of 27,500—as part of a cost-cutting plan. 300 of the jobs being cut are in Sweden. The company, which is seeing costs rise and consumer spending fall, wants to focus on three major priorities: revenue growth, significant price reductions, and increasing traffic at all customer touchpoints.

“Today, affordability is more relevant than ever. This is not new for IKEA. It is at the core of who we are. We need to focus on what matters most to customers. With clear goals and fewer priorities, a more simplified organisation will enable faster decision-making, lower costs, improving our ability to offer lower prices for customers. This will help us stay true to our vision and keep IKEA competitive for many years to come.”

“Decisions like these are never easy, and we are handling the process with care, respect, and transparency,” he continues. Inter IKEA’s announcement follows shortly after a similar measure by Ingka Group, the largest IKEA franchisee, which announced in March that 800 jobs would be cut within his office organisation.