Inter IKEA Group, which owns and manages the Ikea franchise system, is eliminating 850 positions worldwide as it moves to streamline operations, cut costs and reduce prices for customers.
The cuts come as the company contends with softening consumer demand and what it has characterised as growing geopolitical and economic turbulence in the retail sector.
Of the roles being removed, approximately 300 are located in Sweden.
The company said its restructuring is designed to redirect resources towards product range development, pricing strategy, and the customer experience.
Inter IKEA Group CFO Henrik Elm said: “Despite many positive achievements, Inter IKEA Group has grown a bit too complex and too fragmented in a retail environment that requires simplicity and speed.”
Works with 13 franchisees across its global network, the company said it expects the revised structure to be in place before the close of the calendar year, though the final number of roles affected has yet to be confirmed.
It added that the broader objective is to build a foundation for sustained long-term growth while keeping its products within reach of a wide consumer base.
Elm added: “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.”
The announcement follows a similar move by Ikea retailer Ingka Group, which said last month it was considering cutting around 800 roles from its group functions.
Ingka framed those changes as a way to “simplify” the business to support “faster decisions, lower costs and ultimately lower prices for customers”.
Ingka Group chief executive Juvencio Maeztu, who assumed the role in November 2025, said the organisation had grown too complex for a retail environment that demands speed and agility.
“IKEA franchisor cuts 850 jobs in global restructure” was originally created and published by Retail Insight Network, a GlobalData owned brand.
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