* Redundancies likely to affect 800 office-based roles at
group level
* Ingka CEO emphasises need for speed, less complexity
* IKEA Sweden unit also to cut roles, following IKEA
Norway reorganisation
* IKEA trials new stores with faster-to-open format
(Adds background in paragraphs 2 and 8, details on
country-specific layoffs in 11)
By Greta Rosen Fondahn
STOCKHOLM, March 19 (Reuters) - The owner of most IKEA
outlets worldwide said on Thursday it would cut some of its
office-based workforce, with 800 roles likely affected, in an
effort to streamline the organisation.
Ingka CEO Juvencio Maeztu, who took the helm in November,
said a slimmer organisation at the top would enable faster
decision-making, with more "responsibility to the front line".
It would also lower Ingka's costs, helping the retailer to
grow and to bring prices down for customers, he said.
IKEA sales have fallen for the past two years, which the
retailer has attributed to its focus on cutting prices to try to
increase market share and lift sales volume.
"The world we live in, both in the world and in the retail
industry, requires more speed and more agility than ever before.
So we need to reduce the complexity," Maeztu said.
"We are giving more focus to the front line. And by doing
that, you can really take the right decisions and faster
decisions."
Ingka said the cuts would impact office-based jobs across
the group, mainly in Sweden and at the headquarters in the
Netherlands, but did not specify what exact roles would be
removed.
IKEA joins other retailers in cutting jobs this year as weak
economic growth dents consumer spending. Nike ( NKE ) cut 775 jobs in
the U.S. while Home Depot ( HD ) in January announced 800 job cuts.
NEED TO BE AGILE
Ingka employs around 166,000 people across the world. It is
split into three business areas, IKEA Retail, shopping malls
business Ingka Centres, and investment arm Ingka Investments.
Asked about current geopolitical turmoil and the rise in oil
prices, Maeztu said they did not affect Ingka in the short term,
but they were a "reminder" of why IKEA needs to be "agile to
overcome disruption".
IKEA Sweden - Ingka's retail arm in Sweden - separately said
on Wednesday it was also cutting jobs, which could impact 145
additional roles. In February, IKEA Norway said it would cut
50-60 roles in its head office.
IKEA, best known for blue out-of-town warehouse stores, is
shifting focus to more city and suburban stores and Ingka said
it plans 20 such openings by September.