Inter IKEA, which franchises the Swedish home furniture brand in 63 countries, is laying off 850 workers in a cost-cutting drive as consumer demand falls. The company aims to become more efficient and reduce prices.
Inter IKEA manages the sourcing of IKEA products from factories worldwide and supplies 13 franchisees. It faces rising costs and U.S. tariffs, and is shifting from large suburban stores to smaller city-center locations.
CFO Henrik Elm said, "We need to become faster, shorten decision-making processes, and concentrate our efforts on these priorities."
The Iran war has accelerated the decline in consumer confidence, pushing up fuel prices and reducing spending on non-essentials like home renovations.
Of the 850 affected roles, 300 are in Sweden, where IKEA was founded. The cuts represent about 3% of Inter IKEA's 27,500 employees.
