In response to the ongoing conflict in Ukraine, the Inter IKEA Group and Ingka Group, the holding company that controls the home goods retailer’s stores, shared that IKEA operations in Russia and Belarus will continue to scale down after an initial pause in March. Citing the war as a “human tragedy,” in addition to noting the impact of supply chain challenges, the companies shared their belief that a resolution is not foreseeable at the moment and are taking the following steps in response:
- Continuing to halt IKEA’s retail business and reduce its workforce;
- Selling the remaining home furnishings inventory in Russia;
- Reducing the workforce of the Inter IKEA-owned business in Russia;
- Searching for a new owner of four Inter IKEA-owned factories in Russia;
- Continuing the halt on importing and exporting IKEA goods to and from Russia and Belarus; and
- Permanently closing Inter IKEA-owned purchase and logistics offices in Moscow and Minsk.
“Since [March], 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 companies said in a statement. “The war in Ukraine has already had a terrible impact on so many people’s lives. It is a human tragedy that is continuing to affect people and communities.”
Since the war began in February 2022, a number of brands and retailers have boycotted Russia by winding down business in the region or exiting the country, with Starbucks and McDonald’s revealing in May that they would shutter their Russian operations.
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