Ikea has announced that it plans to cut 7500 jobs across its global estate – of a total employee base of 160,000 – as it focuses on transforming the business for the future. Of these, 350 jobs of its 12,100 UK and Ireland roles may be made redundant during the next two years. The cuts will focus on global functions and Ikea's offices across 30 markets.

However, Ikea also plans to create 11,500 new jobs globally over the next two years through opening around 30 new touchpoints, plus investing in its fulfilment network and digital capabilities.

Jesper Brodin, CEO of owner Ingka Group says: “We continue to grow and perform strongly. At the same time, we recognise that the retail landscape is transforming at a scale and pace we’ve never seen before. As customer behaviours change rapidly, we are investing and developing our business to meet their needs in better and new ways.

"We will put greater emphasis on making our existing stores even better and taking the opportunity to renew and reinvent our business in a way that is inspired by our history, culture and values."

In the UK and Ireland, Ikea continues to invest significantly, with a focus on convenience. In FY18, it opened two new stores in Sheffield and Exeter, as well as its new Planning Studio on Tottenham Court Road – the first step in its city centre approach, starting with London. The retailer has aslo invested heavily in its distribution and fulfilment network, with two new CDCs and a parcel unit opening in London.

Ikea Greenwich will open in the spring, creating 500 new jobs.

Javier Quinones, Ikea UK and Ireland country retail manager, says: “We have been in the UK and Ireland for more than 30 years and Ikea has revolutionised the way people live, and the way people shop. Today it is hard to imagine a home without an Ikea product. However, we are in a fast-changing retail environment, and while we continue to grow, we are evaluating how we can remain relevant in the eyes of consumers – now and in the future. We recently announced our city centre approach starting with London, and we will continue to invest in being more convenient through our enhanced service offer and digitialisation.

"While the opportunities ahead of us are exciting, we know that some of the changes won’t always be easy and in some cases, we will have to make difficult decisions. Co-workers are at the heart of our business and throughout this transformation we will have an ongoing dialogue on how to navigate these changes, to ensure we do this in a way in line with our values and ensuring that our co-workers feel supported. We are confident these changes will secure the future of Ikea and will benefit its customers and ultimately its co-workers.”