Ikea may eliminate 800 roles to lower costs and improve efficiency

Ikea’s largest franchisee, Ingka Group, has said it may eliminate around 800 roles as part of a restructuring effort aimed at reducing costs and improving operational efficiency.

The proposed cuts will largely affect corporate and support functions, as the retailer looks to simplify its organisational structure and enable faster decision-making. The move comes as the company reassesses its operating model following a period of rapid expansion.

“We have grown too complex in a retail environment that requires speed and agility,” Chief Executive Juvencio Maeztu said in a company statement. He added that simplifying the business would help deliver “faster decisions, lower costs and ultimately lower prices for customers.”

Maeztu, who took over as chief executive in November, said the restructuring is aligned with Ikea’s core values, particularly its emphasis on simplicity. He also noted that the company would support affected employees and continue investing in reskilling and upskilling initiatives.

The planned workforce reduction reflects a broader effort to streamline operations and eliminate duplication across functions. According to company statements cited by BusinessWorld, the changes are intended to improve execution across markets and strengthen the retailer’s ability to respond quickly to shifting consumer demands.

The timing is notable. Ingka Group has significantly expanded its footprint in recent years. Since 2020, the company has grown from around 375 stores to more than 640 customer meeting points across 32 countries, including dozens of new locations opened in the last financial year.

At the same time, Ikea continues to invest in growth areas. The company has announced plans to pilot new store formats in smaller cities and suburban markets in North America and Europe, with up to 20 locations expected to open by September, creating around 500 jobs.

The group has also been strengthening its logistics capabilities. In 2025, Ingka Investments acquired logistics technology firm Locus to improve delivery reliability and support its expanding omnichannel strategy.

Despite the planned job cuts, the company indicated that hiring will continue in customer-facing roles such as retail operations, logistics and supply chain. This suggests a reallocation of talent rather than a broad-based workforce reduction.

The move reflects a wider trend across global retail, where companies are restructuring corporate functions to remain competitive amid rising costs and increasing demand for speed and digital integration.

For Ikea, the challenge is balancing scale with simplicity. As the business grows more complex, maintaining agility has become a strategic priority — one that is now translating into structural changes.

The company has not provided a timeline for the proposed reductions, and the plans remain subject to consultation in relevant markets.