IKEA layoffs reflect growing trend by companies to recognise and reduce redundancies
Swedish home retailer IKEA’s parent company, Ingka Group, announced its intention to reduce IKEA’s worldwide workforce by 7,500.
At the same time, the company plan to open 30 new, smaller-format stores and create 11,500 jobs over the next two years.
It was recently reported that less than 20 jobs are expected to be eliminated at IKEA’s Ireland stores during those two years.
More than 300 IKEA stores are located in more than 38 countries, including Ireland, employing about 160,000 people worldwide.
The move to reduce IKEA’s worldwide workforce reflects the growing trend by large companies, mostly retailers, to reorganise their global business models and reduce redundancies in today’s evolving marketplace, primarily as it relates to digital business.
Tully Rinckey Ireland Partner Wendy Doyle said:
“The announcement by Ingka Group of its intention to reduce IKEA’s worldwide workforce by 7,500 employees worldwide the next two years should be a reminder that employers should consistently work to ensure that compulsory redundancies are the last resort and that employers consider all options before implementing.
Further, in any business transition or reorganization, employers should attempt to minimize the potential effects on current employees.
