Swedish company Ikea releases about 7.5 thousand employees and reorganizes its global business, reports CNN.
The Ingka Group, which owns and operates most of Ikea's stores, said on Wednesday it is reducing its global workforce by about 5% and moving to smaller shops and more online shopping opportunities.
"We realize that retail is transformed to the extent that we have not seen it yet," said Jasper Brodin, CEO of Ingx Group, in a statement. "With the rapid change in consumer habits, we are also changing by investing and developing our business to meet their needs in a new and better way," he adds.
Abbreviations will primarily affect administrative and support positions. Ikea stressed that less than 75 jobs would be eliminated in the United States.
The Swedish company added that reorganizing its work could lead to the creation of 11.5 thousand new jobs by opening 30 new smaller stores around the world. Currently, Ingka owns 367 Ikea stores and employs 160,000 of its 208,000 employees.
"We will put more emphasis on improving our existing stores and take advantage of the opportunity to renew and rediscover our business in a way inspired by our history and culture," Brodin said.
Ikea has recently opened its first store in India, which plans to open another 25 Asian countries.