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Retail

IKEA to Put Russian Factories Up For Sale, Cut Workforce

Swedish home furnishings giant IKEA plans to put its Russian factories up for sale and cut its workforce due to Russia's invasion of the Ukraine.

RugNews.com Editors
6/16/2022
IKEA will keep its stores shuttered in Russia, selling off inventory and four factories.
 
STOCKHOLM -- Home furnishings retailer IKEA announced it will sell its four it would sell four Russian factories, close offices and reduce its 15,000-strong workforce in Russia, in response to Moscow's invasion of Ukraine.

In March, IKEA had paused of its operations in Russia and Belarus as a consequence of the war, and the next step, according to the world's biggest furniture brand, is to cut its operations.

IKEA retail business will remain stopped, and the company's workforce will be reduced. IKEA guaranteeing six months’ salary for all co-workers, as well as core benefits.

IKEA plans to sell out its home furnishing inventory in Russia. It will also continue to halt all import and export of IKEA products to and from Russia and Belarus, and will permanently close two purchase and logistics offices in Moscow and Minsk.
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