Ingka Group, the largest Ikea franchisee, is moving toward a “simpler organization.” Eight hundred jobs will be cut within the group’s corporate functions. “We have grown too complex in a retail environment that requires speed and agility,” said CEO Juvencio Maeztu.
Fewer executives
Ingka Group, responsible for 87% of global IKEA sales, says it is fully committed to affordability, sustainability, and customer focus, but the path to achieving this involves a major reorganization. The measure is part of a strategic simplification of the organization, intended to enable faster decision-making and reduce costs.
CEO Juvencio Maeztu: “Simplicity is one of our core values, and with this step, we are putting it at the centre of how we organise, work and lead the company. This change is driven by our purpose – not to maximizing profit. It is about bringing our focus and decisions closer to our customers and the co-workers who serve them every day.”
Ikea continues to expand aggressively, however. Since 2020, the number of stores and customer contact points has grown from 375 to more than 640 across 32 countries. In the past fiscal year alone, the group opened 54 new locations, including compact urban formats and suburban stores. Another 20 new stores are planned through September, creating 500 additional jobs. The paradox is clear: while the home furnishings giant is cutting jobs in the back office, it is creating new positions elsewhere.
