Inter IKEA will lay off 850 employees as part of a cost-cutting plan and transition to smaller stores.

Inter IKEA, the owner of the IKEA brand, has announced the layoff of 850 employees as part of a cost-cutting and product pricing reduction plan. This decision comes in the context of a strategic shift from large stores in the suburbs to smaller locations in city centers, in order to attract more consumers.

Chief Financial Officer Henrik Elm emphasized the need to become faster and to shorten the decision-making process. The company is facing rising costs and a decline in consumer confidence, exacerbated by the war in Iran, which has led to increased fuel prices. The 850 affected positions represent approximately 3% of the total 27,500 employees of Inter IKEA, with 300 of these in Sweden, where one of the company's main hubs is located.