The layoffs include 800 positions within Ingka Group's global functions, with 480 of those in Sweden, according to a report. The cuts follow earlier layoff announcements affecting over 600 people about a month ago, according to a report, mainly in global functions in Malmö and Helsingborg. IKEA's press chief Fredrik Norrlid said the company is working to find better and more efficient ways of working.
The Borlänge store, which opened in 2013, will close, affecting approximately 230 employees. IKEA will continue to operate in Borlänge in a much smaller format inside the Kupolen shopping center. The closure was announced at a staff meeting on Tuesday morning at 09:15, after employees received a short email on Monday about a high-priority information meeting the next day.
All facts, like trade indices and other things, speak for Borlänge. We think it is important to proceed with this.
The nearest IKEA store for Borlänge customers after closure will be in Västerås, about 1 hour 15 minutes away. Employee reactions have been marked by sadness and uncertainty. According to Aftonbladet, IKEA employee Izabelle Boväng described the atmosphere as sad, with colleagues caring deeply about each other.
An anonymous employee told Aftonbladet that it felt wrong that the announcement came on such short notice and that everyone had to go back to work afterwards. According to Sydsvenskan, an anonymous employee at Hubhult in Malmö described the mood as low and many as depressed, joking that talking more might lead to a difficult call from upstairs. In addition to the Swedish cuts, IKEA Finland is starting change negotiations affecting 97 employees, with a maximum of 15 possible terminations.
There is a psychology in business that you don't want to be the first to announce layoffs. But IKEA is a good gauge of how households are doing. Now that they go first and lay off employees, they are paving the way for other companies. Then the cork is out, I think.
The negotiations start on April 28 and are expected to last until late May. IKEA Finland's PR manager Marjukka Hilden said the negotiations are due to a production need to develop operations to meet customers' multi-channel purchasing behavior and changes in the retail sector. Separately, Stadium is laying off approximately 100 employees across service offices in Norrköping, Solna, Oslo, and Espoo, according to CEO Kalle Eklöf, who said the exact number per location is not yet known.
Economy commentator Claes Hemberg told TV4 Nyheterna that IKEA's layoffs could trigger a wave of layoffs as other companies follow suit. According to TV4 Nyheterna, Hemberg described that many companies have avoided layoffs for years to protect competence, but now they dare not wait any longer, and he believes a strong wave of layoffs is coming, with much happening before summer. He also said companies cannot handle the current situation and both companies and employees need to understand that tougher times are approaching.
Many companies have avoided announcing layoffs for several years, to protect competence and be ready when the boom comes. But now they dare not wait any longer. So I think we are facing a strong wave of layoffs where much will happen before summer.
However, Konjunkturinstitutet's director general Albin Kainelainen said energy prices have not risen as sharply as feared and forward pricing has not changed, indicating some resilience in the economy. Customer reactions in Borlänge have been mixed. According to Aftonbladet, customer Allan Lind described that he will miss the IKEA store and especially the finds.
Customer Lisa Espinosa told Aftonbladet that she will order online instead of driving to Västerås. Former municipal councilor Peter Hultqvist, according to Dala-Demokraten, described in 2006 that all facts spoke for Borlänge and that it was important to proceed with IKEA's establishment. Ingka Group CEO Juvencio Maeztu said the company will do its utmost to support employees and invest in competence development.
It is important to get started and so far energy prices have not risen as sharply as one might have feared. And above all, pricing looking forward has not changed.
The exact timeline for the closure and the number of actual redundancies versus voluntary departures remain unclear.
Of course there may be an alarmist part in this from me. But companies cannot handle this. Both companies and employees need to understand that tougher times are approaching. Skepticism has finally taken hold. And then there will be layoffs.
Look through the windows, it's almost like you can see how depressed many are. It's of course a tough message, everything feels very uncertain. But it is what it is, what can you do?
If I talk more, maybe I'll get a difficult call from someone up there.
We are working to find better and more efficient ways of working.
It feels sad, I would say. We are a very good team, all colleagues, and we care incredibly much about each other. It feels.
It felt very wrong considering it was so short notice and that everyone had to go down and work after it. I think about everyone who has houses and children. There aren't that many jobs here.
They have almost everything. You can go in and come out with a whole kitchen. What I will miss most are the finds.
No, we will order online, I think. Now I could order and come pick it up after work.
The negotiations are due to the company's production need to develop its operations to meet customers' increasingly multi-channel purchasing behavior and changes in the retail sector.
The primary goal is to find alternatives to termination and offer other work whenever possible.