IKEA lays off 10,000 workers during its exit from Russia, more job losses to come

14 October 2022, 12:30 PM
IKEA closed stores in the Russian Federation (Photo:REUTERS/Evgenia Novozhenina)

IKEA closed stores in the Russian Federation (Photo:REUTERS/Evgenia Novozhenina)

Furniture retailer IKEA will lay off almost all of its employees in Russia as the company withdraws from the market, Jesper Brodin, the CEO of Ingka, the holding company that manages most of Ikea's stores in Russia, told French news agency AFP on Oct. 13.

The company has had “had to say goodbye” to around 10,000 staff out of the 12,000 retail employees in Ikea's Russian stores, Brodin said.

Meanwhile, the company posted a six percent rise in full-year sales on Oct. 13, in what it described as a “challenging” year due to inflation and its scaling back in Russia.

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Since March 4, IKEA has suspended sales in stores and online on the Russian market, as well as production at its factories in Russia.

The company intends to sell its four factories in Russia and warned that it "does not see the possibility of resuming sales in the near future," according to an announcement IKEA made in June.

Shortly after, the company held an online sale of goods from its stores, first for employees, then for other consumers. The sale ended on Aug. 15.

In mid-August, IKEA decided to liquidate its Russian daughter company – Ikea Dom LLC.

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