Ingka Group, the biggest franchise operator of IKEA stores worldwide, is planning to cut around 800 office-based roles as part of a broader restructuring aimed at simplifying its operations and improving agility.
The proposed layoffs will primarily affect corporate and group-level functions, as the company looks to reduce organisational complexity and shift decision-making closer to its retail frontlines. CEO Juvencio Maeztu said the business had “grown too complex in a retail environment that requires speed and agility,” highlighting the need for a leaner and more responsive structure.
The move comes as Ingka Group recalibrates its operating model across more than 30 markets, where it runs the majority of IKEA stores under franchise agreements. The restructuring is expected to lower overhead costs while enabling faster execution at the store level, an increasingly critical factor in large-scale franchise systems.
The company has been under pressure from declining sales over the past two years, driven in part by aggressive price cuts aimed at maintaining affordability and protecting market share in a cautious consumer environment. By streamlining its central functions, Ingka aims to balance cost efficiency with its long-standing value positioning.
Despite the job cuts, Ingka Group continues to invest in expansion. The company is accelerating the rollout of smaller-format stores in urban and suburban markets, reflecting a shift away from its traditional large, out-of-town outlets and aligning with changing consumer shopping patterns.
The restructuring underscores a broader trend across global franchise-led retail networks, where operators are trimming corporate layers and focusing on operational agility. For large franchise systems like IKEA, the emphasis is increasingly on decentralisation, faster decision-making, and cost discipline to sustain growth in a volatile retail landscape.
