Ikea furthers scale back in Russia and Belarus

DELFT, The Netherlands — As the conflict between Ukraine and Russia continues, Inter-Ikea Group and Ingka Group, majority holder of Top 100 retailer Ikea, announced that it is scaling down operations in Russia and Belarus.

Ikea announced in March that it was halting business in Russia and Belarus, and affected employees would still receive pay and benefits for six months.

“Unfortunately, the circumstances have not improved, and the devastating war continues,” officials from Ingka Group and Inter-Ikea Group said in a release. “Businesses and supply chains across the world have been heavily impacted, and we do not see that it is possible to resume operations any time soon.”

As such, it announced the following steps as part of the process:

  • Ikea’s retail business will remain stopped, and its workforce in the two countries will be reduced. In order to support the scaling down process, Ingka Group plans to sell out its home furnishings inventory in Russia.
  • The Inter-Ikea owned industry business in Russia will reduce the workforce and start the process of finding new ownership for all four factories.
  • Import and export of Ikea products to and from Russia and Belarus will remain stopped. The two Inter-Ikea owned purchase and logistics offices in Moscow and Minsk will close permanently.

“This process is currently underway, and all actions and decisions taken will be guided by the IKEA values and to support our people to the best of our ability,” the release said.

See also:

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *