Inter IKEA Group plans to cut approximately 850 jobs as the company behind the IKEA brand works to simplify operations, lower costs, and focus more directly on customers.
The company said the cuts are part of a broader plan to focus on three priorities: growing sales, significantly reducing prices, and increasing customer visits across IKEA retail formats.
“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,” Chief Financial Officer Henrik Elm said in the company announcement.
Inter IKEA said about 300 of the affected roles are expected to be in Sweden. The company said it aims to have the new organization in place before the end of the calendar year.
“Today, affordability is more relevant than ever. This is not new for IKEA. It is at the core of who we are. We need to focus on what matters most to customers,” Elm said.
Affordability Push Comes After Sales Decline
Inter IKEA owns the IKEA concept through Inter IKEA Systems B.V. and serves as the worldwide IKEA franchisor. The company said 13 groups of companies have the right to own and operate IKEA sales channels under franchise agreements.
The move comes after two straight years of lower IKEA retail sales. Inter IKEA reported 26.3 billion euros in total revenue for fiscal year 2025, down from 26.5 billion euros in fiscal year 2024.
IKEA retail sales fell to 44.6 billion euros from 45.1 billion euros, though the company said lower prices helped increase sales quantities.
Inter IKEA said higher sourcing costs in fiscal year 2025 included increased tariff costs, some of which the company absorbed. The company said those pressures came as it worked to control costs, reduce prices, and increase sales volume, even as total IKEA retail sales declined.
Separate IKEA Retailer Also Announced Cuts
Inter IKEA is separate from Ingka Group, IKEA’s largest retailer.
Ingka Group announced in March that 800 Group Functions roles could become redundant as part of a separate restructuring.
Inter IKEA did not say whether any of its 850 job cuts will affect U.S. or Texas-based roles.
As previously reported by The Dallas Express, Rigney Financial Services said in a May client letter that oil prices and Middle East developments could continue driving market volatility this year.
