Ikea Russia to sell factories, reduce workforce

Moscow, Jun 15 (EFE).- Swedish furniture giant Ikea on Wednesday announced it would sell all four of its factories in Russia.

The company will “reduce the workforce and start the process of finding new ownership for all four factories,” it said in a statement.

Ikea said the two logistics offices in Russia and Belarus will be closed permanently, in the framework of a new phase of operation reduction in both countries.

All sales in Ikea furniture shops in Russia and Belarus will remain suspended, affecting many employees, the company added.

On March 3, Ikea suspended all its operations in Russia and Belarus in the wake of the war in Ukraine.

“Since then it has been a priority to provide support and security to co-workers, and the groups of companies have been able to guarantee six months’ salary for all co-workers, as well as core benefits,” the statement added.

“Unfortunately the circumstances have not improved and the devastating war continues. 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.”

Since the beginning of Russia’s invasion of its neighbor on February 24, almost all international companies have shut down business in Russia

Russian president Vladimir Putin warned the West that its companies will face significant difficulty returning to the Russian market.EFE

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