5000 job cuts not enough; Ikea founder says bosses should have heeded expansion warning

7th July 2009 | flatpack | Furniture retailer Ikea will need to make more redundancies despite having recently shelved 5,000 jobs across the world.

That’s the view of Ingvar Kamprad, the founder of the Swedish furniture giant who now works as an adviser to the company. He also believes the company’s decision to scale back worldwide expansion plans is overdue, and the firm should have listened to his warning earlier.

He told a Swedish newspaper that manufacturing and logistics jobs need to be cut because of below budget sales and the need to drive efficiency.

Ikea returned a profit of £40.7m on UK sales of £1.25bn last year.