Retail giant IKEA announced on Wednesday that it would specifically include its operations in Russia, finish four factories and lay off a portion of its Russian workforce, making the latest multinational to permanently punish Russia for its invasion of Ukraine.
IKEA’s holding company, Inter IKEA, said it would close the 4 factories it operates in Russia and two of its logistics offices in Russia and Belarus.
IKEA also said it would “reduce” its workforce in the countries, without specifying how much staff will be included in the layoffs, the company said in March it had about 15,000 employees in Russia and Belarus.
The Ingka Group, which operates most IKEA stores, will sell its furniture inventory in Russia, the company said.
All IKEA retail outlets in Russia will remain closed, Ingka helps keep its 14 shopping malls open in Russia.
IKEA explained that it was “not possible to resume operations anytime soon” because “the devastating war continues. “
IKEA suspended all retail activities in Russia and Belarus in March. There are 17 IKEA outlets in Russia, representing approximately 4% of the 469 IKEA outlets worldwide. The company announced in March that it would pay its Russian workers until August. IKEA is one of many corporations that scaled back their operations in Russia, or withdrew from the country altogether, after the Russian invasion of Ukraine in February.
McDonald’s is the company that has attracted the most attention for its resolve to leave the Russian market after the war, and the American fast-food titan announced last month that it would sell all its Russian stores to a local operator. McDonald’s The Russian successor opened Saturday with wonderful fanfare.
“The End of an Era”: Ikea, the Russian Middle Class and the New Cold War (Financial Times)
“Tasty and it’s already there”: old McDonald’s restaurants reopen in Russia under a new call (in photos) (Forbes)