Ikea to cut 850 jobs globally with 300 affected in Sweden

Ikea will eliminate 850 jobs worldwide, including around 300 in Sweden, as part of a new cost-cutting plan, SVT Nyheter reports. The move marks the third round of layoffs in two months, bringing the total number of at-risk positions to 2,000.

The reductions target Inter Ikea, the company owning the brand and responsible for product development. Inter Ikea employs roughly 5,500 people in Sweden, where the latest cuts will primarily impact operations.

Henrik Elm, Inter Ikea’s chief financial officer, confirmed the company is handling the layoffs through voluntary agreements rather than formal notices. “We have not issued a redundancy warning but are managing the affected employees through consultations and in cooperation with labour market partners,” Elm told Dagens Industri.

Elm cited rising interest rates, trade tariffs, and inflation as key factors driving up prices and reducing customer demand. To regain competitiveness, Ikea recently lowered prices by 10 percent, a decision that further strained profitability.

“Our ability to lower prices so customers can afford Ikea is more important than ever, and that’s impossible if our cost base is too high,” Elm told Reuters.

Earlier this year, Ikea’s largest franchise operator announced two separate cost-saving measures: first, a plan to cut 945 jobs, followed by the closure of its Borlänge store, affecting around 230 employees. The majority of the 2,000 jobs now at risk are in Sweden.

SVT has sought further comment from Ikea, which referred to its official press statement.