Ikea Looks to Cut More Staff
July 7, 2009
The global economy is taking its toll on Swedish-based retailer Ikea.
The company has slashed 5,000 jobs worldwide, and the company's founder Ingvar Kamprad has told Swedish business publication Dagens Insdustri that more layoffs will be necessary.
“We need to reduce our personnel further, especially within manufacturing and logistics”, Kamprad said. “It’s both about adjusting to sales which are well below what we budgeted for and becoming more effective”.
Kamprad said sales in Ikea’s stores are 7 percent below projections.
"That corresponds to 8 billion kronor (730 million euros, $1 billion) on an annual basis which we have to adjust to," he was quoted as saying.
Kamprad said the company would hire a few thousand people to work at its 14 new stores planned to open worldwide this year.
The company has slashed 5,000 jobs worldwide, and the company's founder Ingvar Kamprad has told Swedish business publication Dagens Insdustri that more layoffs will be necessary.
“We need to reduce our personnel further, especially within manufacturing and logistics”, Kamprad said. “It’s both about adjusting to sales which are well below what we budgeted for and becoming more effective”.
Kamprad said sales in Ikea’s stores are 7 percent below projections.
"That corresponds to 8 billion kronor (730 million euros, $1 billion) on an annual basis which we have to adjust to," he was quoted as saying.
Kamprad said the company would hire a few thousand people to work at its 14 new stores planned to open worldwide this year.
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