As the retail industry upheaval continues, Ikea is planning to shake things up.
Ikea Group, the company that owns most of the Ikea furniture stores around the world, said on Wednesday that it plans to cut 7,500 positions over the next two years, representing about 5% of the company’s global workforce. According to Reuters, which earlier reported on the move, Ikea’s job cuts will mostly center on administrative support staff whose positions have become redundant.
The job cuts are part of a broader strategy by Ikea to reinvent its business and shift focus. The company said that it plans to improve its digital business and boost online sales and test new store concepts to get a sense of what customers really want from a brick-and-mortar retailer.
Those efforts will result in Ikea needing to hire new people, the company said. It plans to hire 11,500 during the same period it’s laying others off, creating a net gain in its global workforce of 4,000 positions.
Ikea’s move comes as retailers across the world are trying to reinvent themselves in light of what some have called the “retail apocalypse.” Toys ‘R’ Us shuttered its doors this year, and the future of Sears is decidedly in doubt. Other retailers are in similarly dire straits.
For its part, Ikea has said that its business is strong. Earlier this week, the company also announced plans to build its biggest store ever in Manila, Philippines in 2020. It’s expected to span 700,000 square feet.
