IKEA is massively scaling down its Russian operations

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Swedish furniture company IKEA announced that it will “further scale down” business in Russia and Belarus in a statement on Wednesday.

The company had already paused operations in both countries on March 3 due to the war in Ukraine, but said “unfortunately the circumstances have not improved.”

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,” it added.
As part of this scaling down IKEA is looking for new ownership for all four of its factories in Russia; all import and export of IKEA products to and from Russia and Belarus will remain frozen; its offices in Moscow and Minsk will close permanently; and IKEA stores will also remain closed.
IKEA acknowledged that many staff will lose their jobs because of this decision.
It said that in Russia its retail business would remain closed and it would sell out its home furnishing inventory. Ikea has 17 stores in Russia.
In a statement published March 3 the company said the number of staff directly impacted was around 15,000, and subsequently announced it had guaranteed 6 months’ salary for all workers. 

 

 

SOURCE: NEWS AGENIES

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