IKEA to create 11,500 New Jobs Globally in 2 Years
IKEA India to ramp up headcount from 1,500 to 15,000 co-workers
IKEA (Ingka Holding B.V and its controlled entities) has announced that in the coming two years 11,500 new jobs will be created globally, through opening around 30 new IKEA touchpoints, investments in its fulfilment network and in digital capabilities. At the same time 7,500 jobs may be made redundant, out of the total 160,000 co-worker population, mainly focusing on global functions and offices in 30 markets.
The Swedish multi-national is accelerating its transformation, stepping up investments in new and existing IKEA stores and fulfilment centres, developing city centre formats and focusing on its e-commerce platform.
“Building on many years of solid growth and as part of a transformation, Ingka Group is assessing all parts of the organisation and is simplifying to enable a greater focus on adding value to its customers,” read a communiqué from the company.
“We continue to grow and perform strongly. At the same time, we recognise that the retail landscape is transforming at a scale and pace we’ve never seen before. As customer behaviours change rapidly, we are investing and developing our business to meet their needs in better and new ways. We will put greater emphasis on making our existing stores even better and taking the opportunity to renew and reinvent our business in a way that is inspired by our history, culture and values. Our values guide our work and build our inclusive, open and honest culture. It’s all based on a spirit of togetherness and enthusiasm and we will continue to transform with that spirit,” said Jesper Brodin, Chief Executive Officer, Ingka Group.
India
IKEA’s employee count in India is expected to grow to to 15,000 in the future as it has committed to invest 1.5 billion euros in India. The company intends to reach 200 million Indians in the coming three years through different channels. Three Indian cities — Mumbai, Bangalore and Delhi — are included in Ingka’s top 30 mega city strategies.
“Through its expansion in India, it (IKEA India) will create many more direct and indirect jobs. The number of co-workers is expected to grow from the current strength of 1,500 co-workers to over 15,000 co-workers in the future, out of which 50 per cent will be women,” read a communiqué from the company.
In addition to jobs in the stores and new city centres, the company is looking at adding to its head count in data analytics, diversified fulfilment networks and personalisation. Around 3,000 new jobs are expected to be created in the next two years in line with its growth plans and transformation.
“The India organisation will align with the new global structure and competencies to build a future-ready organisation in terms of skill sets. IKEA India will hire many more people, both in terms of direct and indirect employment, and as we start our digitisation journey, we will add many more co-workers with different skill sets, while also creating avenues for our existing co-workers to grow in many new roles,” IKEA India Chief Executive Officer Peter Betze said.
IKEA opened its first India store in Hyderabad in August 2018 and recently broke ground for its Bangalore store. It is expected to enter Mumbai next with online and stores.
UK & Ireland
In the UK and Ireland, IKEA continues to invest significantly, with a focus on greater convenience. In FY18, the retailer opened two new stores in Sheffield and Exeter. IKEA also opened its new Planning Studio on Tottenham Court Road, the first step in its City Centre Approach, starting with London.
As well as the opening of new stores, IKEA has invested heavily in its distribution and fulfilment network with two new Customer Delivery Centres and a Parcel Unit opening in London.
IKEA Greenwich will open its doors in spring 2019, creating 500 new jobs. However as part of this next phase of the transformation it is anticipated 350 jobs out the 12,100 UK and Ireland roles may be made redundant during the next two years.
“We have been in the UK and Ireland for more than 30 years and IKEA has revolutionised the way people live, and the way people shop. Today it is hard to imagine a home without an IKEA product. However, we are in fast-changing retail environment and while we continue to grow, we are evaluating how we can remain relevant in the eyes of consumers — now and in the future. We recently announced our City Centre Approach starting with London and we will continue to invest in being more convenient through our enhanced service offer and digitialisation,” said Javier Quinones, IKEA UK and Ireland Country Retail Manager.
