On 3 March, Inter IKEA Group and Ingka Group announced the pausing of IKEA operations in Russia and Belarus as a consequence of the war in Ukraine. Since then it has been a priority to provide support and security to co-workers, and the groups of companies have been able to guarantee 6 months’ salary for all co-workers, as well as core benefits.
Unfortunately the circumstances have not improved and the devastating war continues. 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 a consequence, Inter IKEA Group and Ingka Group have now each decided to enter a new phase to further scale down the IKEA business in Russia and Belarus.
- The IKEA Retail business will remain stopped, and the workforce will be reduced, meaning that many co-workers will be affected. In order to support the scaling down process, Ingka Group plans to sell out its home furnishing 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.
About IKEA
IKEA offers well-designed, functional and affordable, high-quality home furnishing, produced with care for people and the environment. There are several companies with different owners, working under the IKEA Brand, all sharing the same vision: to create a better everyday life for the many people. IKEA was founded in Sweden in 1943.
About Inter IKEA Group
Inter IKEA Group includes Inter IKEA Systems B.V., IKEA of Sweden AB, IKEA Supply AG, IKEA Industry AB and related businesses. Inter IKEA Holding B.V. is the holding company for the Inter IKEA Group.
About the IKEA franchise System
The IKEA retail business is operated through a franchise system with franchisees that are authorised to market and sell the IKEA product range within specified geographical territories. Inter IKEA Systems B.V. is the owner of the IKEA Concept and worldwide IKEA franchisor, who also assigns different IKEA companies to develop the range, supply products and deliver communication solutions. Today, 12 different groups of companies own and operate IKEA sales channels under franchise agreements with Inter IKEA Systems B.V.
