Furniture giant Ikea plans to cut 7,500 jobs worldwide — approximately 75 of which are in the United States — as part of a plan to cater more to online customers, the company said Wednesday.
The shakeup at the Swedish company, first reported by the Wall Street Journal, shows that even Ikea — known for its massive suburban stores and affordable assemble-yourself furniture — is not immune to the online competition that has affected other brick-and-mortar retailers.
Most of the job cuts will not hit Ikea’s retail workers, but rather those in office positions including human resources and communications, the Journal said.
Meanwhile, the firm plans to create thousands of new jobs — 11,500, or 4,000 more than it is cutting — by opening 30 new stores in urban centers and by investing in its e-commerce and delivery offerings.
In Wednesday’s statement, Lars Petersson, Ikea’s manager for U.S. retail operations, said the company wants to “create the IKEA of the future by … being more accessible and fully embracing technology.”
In a financial report last month, the company said that during the 12 months ending Aug. 31 its website drew 2.5 million visits but accounted for only 5 percent of sales.
The same report noted that Ikea has been experimenting with retail concepts aimed at expanding beyond the massive suburban stores the company is known for.
ON THE MOVE
Bank of Hawaii has announced the following two new vice presidents:
>> Steven Johnson has joined the Legal Division as its new vice president and corporate counsel. He provides legal services to various bank units on federal and state regulatory concerns, consumer compliance issues and contractual matters. Johnson has 21 years of legal experience, including handling similar duties at State Farm Bank, F.S.B., in Bloomington, Ill.
>> Mark Sterrett is the Corporate Banking Division’s new vice president and primary relationship officer. He leads a team focused on providing banking solutions to corporate clients. A commercial banker for 11 years, Sterrett recently served as a director in Corporate Banking at MUFG Union Bank in Seattle. His career also includes six years of financial and audit reporting experience.
