Swedish company Ikea announces about 7.5 thousand employees and reorganizes its global business, CNN reported.
The Ingka Group, which owns and operates most Ikea stores, announced on Wednesday that it cuts global workforce by about 5 percent and switches to smaller shops and more online shopping opportunities.
"We realize that retail trade is transforming to the extent we have not witnessed before," said Inz Jasper CEO Jasper Bronin in a statement. "With the rapid changes in consumer habits, we are also changing to investing and developing our business to meet their needs in a new and better way," he adds.
Shortcuts will primarily affect administrative and support positions. Ikea pointed out that less than 75 jobs will be removed in the United States.
The Swedish company added that the reorganization of its business could lead to the creation of 11.5 thousand new jobs, opening 30 new smaller stores around the world. Currently, Igka owns 367 Ikea stores and employs 160,000 of its 208,000 employees.
"We will put more emphasis on improving our existing stores and exploiting the possibility of renewing and rediscovering our business in a way inspired by our history and culture," Bronin said.
Ikea recently opened its first store in India, plans to open another 25 in the Asian country.