Ingka Group, the largest franchisee of Ikea, could cut around 800 jobs within its Group Functions, a move intended to “simplify the organisation,” according to the company.
“We have grown too complex in a retail environment that requires speed and agility,” Juvencio Maeztu, CEO of Ingka Group, said in a statement Thursday. “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.”
Maeztu said the job cuts were “driven by our purpose” versus maximizing profit. “It is about bringing our focus and decisions closer to our customers and the co-workers who serve them every day.”
Ingka Group did not directly answer inquiries regarding its intentions to provide severance or other benefits, but a spokesperson said “we are handling this process with care and respect. Guided by our Ikea culture and values, we are committed to supporting co-workers throughout the process, following local processes, and working closely with social partners where applicable. The process to identify the potential impact in other countries will now start, which will include dialogue with social partners where applicable.”
The workforce reduction is part of the company’s broader efforts to simplify its organizational structure, which it announced in December. As part of that initiative, Ingka Group introduced a management team: CEO Maeztu, who took the helm in November, was joined by Deputy CEO and CFO Cindy Andersen, Commercial Manager Javier Quinones, Development and Transformation Manager Emily Birkin, Digital Manager Parag Parekh and People, Sustainability and Communication Manager Ulrika Biesért.
In addition to the job cuts, Maeztu said the company is investing in reskilling and upskilling within its workforce.
The company employs over 166,000 workers, according to its latest annual report. In 2025, revenue inched down 0.9% year over year to 41.5 billion euros (about $47.8 billion at press time). At the same time, operating income grew nearly 17% to 1.5 billion euros and net income increased 75% to 1.4 billion euros.
The job cuts at Ingka Group come as the broader home sector of retail faces significant challenges, including a weak housing market, low consumer confidence and ever-changing tariff policies.
While Ikea’s customers are still taking on smaller projects, particularly around home organization, they are forgoing larger projects like bathroom or kitchen remodels, Casandra Dominguez, head of consumer insights at Ikea U.S., told Retail Dive earlier this month.
But Ikea’s focus on affordability, which it emphasized again Thursday, “is actually why Ikea tends to grow during recessionary periods … when consumers are seeking value,” Dominguez said.
