Ikea plans to cut up to 303 positions in France, while creating 100 new jobs

The Swedish furniture giant plans to cut up to 303 positions in France. A maximum number, the group promises, Monday October 19, which will mainly affect administrative functions and staff at the company's headquarters based in the Paris region. But the activity does not stop.

On the contrary, it is necessary to strengthen commercial and strategic positions to develop the activity. One hundred positions will be created at the same time with this in mind. Ikea employs more than 12,000 people in France.

The brand achieved a turnover of three and a half billion euros there for the 2024-2025 financial year. Moreover, the unions are surprised by the workforce reduction plan given the group's economic situation which, in their eyes, is far from bad. Ikea will compensate for the drop in activity with an investment of 1.2 billion euros worldwide, because the phenomenon is not only European.

Also read Furniture: the French are deserting stores for the web More than 400 items at reduced prices to retain customers For the second time since 2024, the brand has just lowered its prices on more than 400 items to retain customers. Labels reduced by 25%, or even more, on certain items such as kitchen equipment or the famous Billy shelves. The French, and Europeans in general, actually buy less furniture today.

Brands in the sector are faced with three major problems. First, the Covid effect is over. With the lockdowns, households redid their interiors and the furniture market took full advantage of this.

But this period is over, what was done at the time no longer needs to be done today. Added to this is the recent wave of Chinese platforms like Shein and Temu which, like fast fashion clothing (ultra-ephemeral fashion) also offer ultra-low-cost furniture, at ever lower prices. Finally, in addition to the real estate crisis, the drop in the birth rate adds to this double penalty: fewer children mean fewer rooms to fit out and furnish.

The impact is proven by the latest figures from professional federations.

Machine-translated from French