IKEA Cuts 7,500 Jobs In Biggest Restructure
Swedish furniture giant, IKEA, has issued its biggest re-structure yet, slashing around 7,500 jobs globally, primarily across office and administration.
Announced on Wednesday, IKEA claims it will cut around 5% of its global workforce in the next two years.
The job cuts respond to evolution in the retail landscape, with the Swedish giant pledging to increase digital capabilities and online sales.
Responding to market change, IKEA has pledged to hire over 11,000 new people – a net gain of around 4,000 roles.
The Swedish giant will also be testing new in-store concepts, to gauge what consumers really want from traditional stores.
Earlier this week, IKEA announced it was building its biggest store to date in Manilla – a 700,000 square feet outlet by 2020.
The company has reportedly set its sights on opening 30 new stores in the next two years.
For the last financial year, IKEA reported retail sales of €34.8 billion ($US39.69 billion), a slight lift versus €34.1 billion post the year before.