IKEA Expected to Lay off 75 United States-Base Employees in Transformation to a New IKEA

IKEA, which has its United States headquarters next to its store in Conshohocken (Plymouth Township) announced yesterday that it will be making changes to transform itself to meet the current marketplace. Those changes will result in new jobs being created, while others becoming redundant. Overall, 7,500 jobs could be determined to be redundant, but only about 75 out of the 7,500 would impact its operation in the United States. It was not stated how many of the 75 jobs are based at its headquarters on Alan Wood Road.

Below is the text of a letter from Lars Petersson  country manager of IKEA Retail U.S.

Yesterday, Ingka Group made an important announcement about our transformation. We are building the IKEA of the future based on our strengths and 75 years of entrepreneurial experience and innovation. Over the next three years, our co-workers and customers will begin to experience a new IKEA.

We have a strong foundation of being a well-loved brand with a unique business idea, concept, set of values, and vision that are integral parts of our legacy and our future. We will create the IKEA of the future by providing inspiring home furnishings solutions, delivering the experience and services our customers need, being more accessible, and fully embracing technology.

In the U.S., we’ve been on this journey for quite some time. We have already made significant investments to enhance our e-commerce experience and service offerings, including new lower priced shipping & delivery, Click & Collect, financing and TaskRabbit assembly services. We are investing in existing stores to ensure they provide our customers with a refreshed family-friendly experience, filled with inspiration. In the last three years, we’ve opened 12 new stores and added five new customer fulfilment and distribution units to bring IKEA closer to many more people across the U.S. In 2019, we will open two new stores in San Antonio, TX, and Norfolk, VA, which will create approximately 500 new job opportunities.

To build the future IKEA, we need to continue to evolve and make some important changes. Globally, we anticipate that over the coming two years, we will create 11,500 new jobs as we open around 30 new touch points and invest in our fulfilment network and our digital capabilities. We also estimate that out of the 160,000 jobs in our total Ingka business, some will be relocated, changed or removed and that 7,500 jobs may be redundant. In the US, we expect that less than 75 jobs may be made redundant at this time.

Customers and co-workers are at the heart of our transformation, and there will be significant opportunities for our co-workers in the future. We are committed to going on this journey together with our co-workers in a way that is aligned with our culture and values, so they feel informed and supported every step of the way.