Swedish company Ikea releases about 7.5 thousand of its employees and reorganizes its global business, CNN reports.
Ingka Group, which owns and operates most of Ikea's stores, said on Wednesday that it cuts the global workforce by about 5 percent and switches to smaller shops and more online shopping opportunities.
"We realize that retail is transformed to the extent that we have not witnessed before," Ingx Group CEO Jasper Brodin said in a statement. "With the rapid change in consumer habits, we also change by investing and developing our business to meet their needs in a new and better way," he adds.
Abbreviations will primarily affect administrative and support positions. Ikea pointed out that fewer than 75 jobs would be removed in the United States.
The Swedish company added that the reorganization of its business could lead to the creation of 11.5 thousand new jobs by opening 30 new smaller stores around the world. At present, Ingka owns 367 Ikea stores and employs 160,000 of the 208,000 employees of the company.
"We will put more emphasis on improving our existing stores and take advantage of the opportunity to renew and rediscover our business in a way inspired by our history and culture," said Brodin.
Ikea recently opened her first store in India, planning to open another 25 in the Asian country.