IKEA In For a Change

blue ikea building

writer icon Vera P. Jensen     Alexander Isreb   |   Business     🕐 21. May. 2019

IKEA is introducing a new organisational structure for its Swedish branch, and this move has stirred up worker concerns.

According to reports in Swedish media, the shifts in areas of HR, IT and logistics in the company have left the furniture retail giant in some turmoil.

Kamprad’s passing
Ever since IKEAs founder, Ingvar Kamprad, passed away in January 2018, the company is suffering the effects. In particular, when it comes to how management is run.

Today, May 21st, a new organisational structure is being presented by the company, on how to better follow the digitalised changes needed and restructure its retail aspects globally.

What this means
This will leave some employees with lower salaries, but according to IKEA’s Swedish press manager Jakob Holmström, the pay-cuts will not apply across the board.

In addition, some employees will also be bought out with a minimum of nine months severance pay:

"The indications we have right now is that it will be less than 650 [in Sweden] who will be given notices of termination, but it is too early to say an exact number. What we know for sure is that it all not be more than that,” Holmström emphasised.

However, with the new organisational structure, the company will actually see an increase in employees overall: staff additions are expected to reach numbers as high as 11 000 new hires globally.

It is too early to tell what this number will translate to in Sweden, however Holmström points out that after the restructure “Ikea will, in Sweden as well, have more employees than [they] have today.”

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