Ikea scales down its business in Russia & Belarus

It has been a priority to provide support and security to co-workers, and the groups of companies have been able to guarantee six months’ salary for all co-workers, as well as core benefits. Unfortunately, the circumstances have not improved and the devastating war continues. Businesses and supply chains across the world have been heavily impacted and we do not see that it is possible to resume operations any time soon, Ikea said in a press release.

The Ikea retail business will remain stopped, and the workforce will be reduced, meaning that many co-workers will be affected. In order to support the scaling down process, Ingka plans to sell out its home furnishing inventory in Russia. The Inter Ikea owned industry business in Russia will reduce the workforce and start the process of finding new ownership for all four factories.

The import and export of Ikea products to and from Russia and Belarus will remain stopped. The two Inter Ikea owned purchase and logistics offices in Moscow and Minsk will close permanently.

This process is currently underway and all actions and decisions taken will be guided by the Ikea values and to support our people to the best of our ability.

Fibre2Fashion News Desk (GK)