IKEA makes final decision to leave the Russian market

IKEA makes one of its most difficult decisions in history

IKEA is selling its four factories in the Leningrad, Kirov and Novgorod regions of Russia. The situation with business processes and supply chains worsened because of the sanctions, the company said in a statement.

IKEA also decided to cut its business and staff in Russia.

At the same time, the Kommersant newspaper said that IKEA's retail business in Russia "remains paused." This will entail optimization and staff reductions. It remains unknown how many people will lose their jobs. There are no plans to resume imports and exports of IKEA goods in Russia and Belarus, the company also said.

This is a difficult, but necessary decision that the company had to make, IKEA representatives said.

Mega shopping malls owned by IKEA will continue operating. IKEA also announced that it would sell out household goods that have been left at its warehouses.

According to "Caution, News" Telegram channel, IKEA Russia employees were offered to quit by the agreement of the parties. Their salaries would be kept for the whole summer, and insurance — until the end of December.

About 20,000 people, including Swedish representatives, took part in the online meeting, Baza Telegram channel said. According to a source of Govorit Moskva (Moscow speaking) radio station, the IKEA management called it one of the most difficult decisions in the history of the company.

IKEA was operating 17 stores and eight studios in Russia. The company employs almost 15,000 people. All IKEA stores in Russia were temporarily closed on March 4 because of the special operation in Ukraine. The company explained the temporary withdrawal from the Russian market by interrupted supply chains. At the same time, spokespeople for the Russian Ministry of Industry and Trade assured that IKEA was looking for an opportunity to reopen its stores and set up logistics.

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Author`s name Editorial Team
Editor Dmitry Sudakov