New York (CNN Business)Ikea is reorganizing its global business to reach more urban customers and people who don’t want to shop in its massive warehouses.
Ingka Group, which owns and operates most Ikea stores, said Wednesday it is cutting its global workforce by 5% and shifting toward smaller stores and more online shopping. The company will lay off about 7,500 employees.
“We recognise that the retail landscape is transforming at a scale and pace we’ve never seen before,” CEO of Ingka Group Jesper Brodin said in a statement. “As customer behaviours change rapidly, we are investing and developing our business to meet their needs in better and newer ways.”
