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Ikea to cut 350 UK staff, but thousands will be hired to man 30 new stores

PUBLISHED: 11:58 21 November 2018 | UPDATED: 13:27 21 November 2018

IKEA Norwich. Photo by Vishnu Joory.

IKEA Norwich. Photo by Vishnu Joory.

Archant

Furniture giant Ikea has announced that 350 jobs are at risk in the UK as part of a cull of 7,500 employees worldwide.

The flat-pack furniture firm employs 12,100 in the UK and Ireland, including an order and collection point in Sweet Briar Retail Park in Norwich.

It also has a superstore at Lakeside in Essex.

Ikea’s parent firm Ingka Group said that as part of the transformation, it is assessing all parts of the organisation and is “simplifying to enable a greater focus on adding value to its customers”.

A spokesman for Ikea confirmed that the chances will “not impact the majority of co-workers in our stores and distribution units. Instead we will look at how we are organised in our global functions, service office and other support areas.”

As part of the shake-up, 11,500 new jobs will also be created over the next two years through the opening of what Ikea called 30 new “touchpoints”.

These could be similar to Norwich’s store, which was the first of its kind in the country, aimed at bridging the gap between online and in-store shopping.

Jesper Brodin, chief executive officer of Ingka Group, said: “We continue to grow and perform strongly. At the same time, we recognise that the retail landscape is transforming at a scale and pace we’ve never seen before.

“As customer behaviours change rapidly, we are investing and developing our business to meet their needs in better and new ways. We will put greater emphasis on making our existing stores even better and taking the opportunity to renew and reinvent our business in a way that is inspired by our history, culture and values.”

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