Ikea is reshaping its global setup — scaling back internal roles while accelerating store expansion and testing new retail formats designed for faster rollout and closer proximity to customers.
Retail: Ikea Cuts 800 Jobs, Boosts Store Expansion
More stores — but fewer corporate jobs: Ikea’s parent company, Ingka Group, has announced plans to cut 800 roles within its group functions as part of an effort to simplify the organization. At the same time, the company continues to expand its retail footprint: 54 new Ikea stores were opened in the past fiscal year, with 20 more scheduled to launch by September.
According to Ingka, the restructuring supports its broader goal of maintaining the low prices that are as much in Ikea’s DNA as the Swedish meatballs and the in-store kids playground. Neither the prizes, nor the store experience are to be compromized. The layoffs also doesn’t seem to affect the people working in the furniture houses but only corporate functions.
“We have grown too complex in a retail environment that requires speed and agility. Simplicity is one of our core values, and with this step, we are putting it at the center of how we organize, work, and lead the company,” says Juvencio Maeztu, CEO of Ingka Group | Ikea. He adds that Ikea will invest in reskilling and upskilling to ensure employees are equipped for the company’s future.
In recently opened stores, Ikea has significantly increased the use of digital touchpoints, with a Stockholm-based digital signage integrator playing a key role in new retail concepts such as city-center locations. These inner-city stores — like the one on London’s Oxford Street — are typically smaller and rely more heavily on browse-through touchscreens and ambient signage.
20 smaller stores to open in 2026
Another concept currently being piloted is a smaller-format store designed for suburban areas and smaller cities. According to Ingka Group, these locations can be rolled out more quickly than traditional large-format stores in out-of-town retail parks. They will offer planning services, a curated product selection, and convenient food options in locations where people already shop daily.
The new smaller-format stores will be introduced in towns and communities in France, Germany, Italy, Spain, Portugal, and Canada. In France, for example, Ikea will open its first 2,000 m² store in Limoges by summer, with additional stores planned in other parts of the country. Coimbra will become the first city in Portugal to welcome the new format, with a location spanning more than 4,000 m², while Poland is set to open its second store by the end of the year in the city of Białystok.
Ikea is also testing shared retail spaces with third-party brands. The first example, developed in collaboration with Decathlon, has opened near London.
Since 2020, Ikea has expanded from around 375 stores to more than 640 across 32 countries. In parallel, the company has strengthened its delivery capabilities, including through the acquisition of logistics company Locus.
