IKEA To Sell Russian Factories, Layoff Workforce

The Swedish furniture company, Ikea, the world’s biggest furniture brand, announced on Wednesday its plans to shut down offices and sell factories in Russia as it continues to invade Ukraine.   

“The circumstances have not improved, and the devastating war continues,” Ikea management said

“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,” Ikea management added. 

The company of about 28,000 workers in Russia said it would begin looking for buyers for its four factories in the country and would permanently close two purchase and logistics offices in Moscow and Minsk and layoff workforce. 

In early March, Ikea announced it would temporarily close stores and postpone sourcing in Russia as waves of Western sanctions hit the country’s economy. 

Earlier, Starbucks and McDonald’s exited Russia over its war in Ukraine, leaving Russians to take ownership of the businesses under new branding. 

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