Inter IKEA Cuts Jobs as Company Looks to Simplify Operations

Inter IKEA, franchisor of the IKEA brand across 63 counties, has announced that it will lay off 850 workers following a decrease in consumer demand.

These layoffs come as the company looks to streamline operations and shift towards smaller, city-centre locations to make the shopping experience more accessible and convenient for consumers. 

“We need to become faster, shorten the decision-making processes and simply concentrate our efforts on these priorities,” Inter IKEA COO Henrik Elm told Reuters in an interview.

The job cuts represent around 3% of Inter IKEA’s workforce. 

Shifting consumer demand

According to Henrik, consumer confidence has been impacted by the Iran war – with increased fuel prices making customers less likely to buy non-essential items. 

“In times when consumer confidence is very much affected, the disposable incomes are really going down for many, ​especially the consumers we want to reach,” he said.

“Our ability to ​lower the ⁠prices so they can afford IKEA is more essential than ever before, and of course you can't achieve that if you have too high a cost base.” 

The company has also been seeing lower-than-average revenue, with profits declining for two consecutive years. 

According to Inter IKEA, this drop can largely be attributed to higher sourcing costs – including an increase in US tariffs – and voluntary price reductions, with wholesale sales volumes rising 6% year-over-year despite lower revenues. 

In order to manage shifting consumer demands and decreased revenue, Inter IKEA appointed Jakub Jankowski as its new CEO in January 2026 – replacing Jon Abrahamsson Ring, who held the CEO role for close to eight years. 

Jakub first joined IKEA in 2001, and has held a series of leadership roles over the years across Romania, the Netherlands, Switzerland, Sweden and Poland. 

“I am truly honored and humbled by the task, and I am looking forward to building on the solid foundation that Jon leaves behind,” Jakub said upon his appointment. “There is only one way to build success and continue to develop IKEA as the leader in life at home. And that is to do it together – with all parts of the value chain. 

“I strongly believe in the IKEA direction and in continuing the work to make IKEA even more affordable, accessible and sustainable.”

Job cuts impact franchisees

Ingka Group – IKEA’s largest franchisee – has also announced plans to cut jobs, as part of this broader commitment to simplifying operations. 

The company has said 800 employees may be made redundant, with the group looking to lower costs and enable faster decision-making. These cuts are set to impact office-based workers, mainly in Sweden and the Netherlands.

“We have grown too complex in a retail environment that requires speed and agility,” said Juvencio Maeztu, CEO of Ingka Group. “Simplicity is one of our core values, and with this step, we are putting it at the centre of how we organise, work and lead the company.

“This change is driven by our purpose – not maximising profit. It is about bringing our focus and decisions closer to our customers and the co-workers who serve them every day. 

“This step will create the right pre-conditions to grow and lower prices while staying true to our vision of creating a better and more affordable and sustainable everyday life for the many people.”

As the company’s largest franchisee, Ingka group accounts for 87% of global IKEA sales.