Swedish furniture retailer IKEA will scale back its business operations in Russia and sell all four factories based in the country, RBC business daily reported Wednesday, citing the company’s press service.

IKEA, which employed about 15,000 people in Russia, temporarily closed its stores and suspended operations at its factories there in March amid international fallout from Moscow’s invasion of Ukraine.

According to information obtained by RBC, the company’s management now considers it impossible to continue operations in Russia due to difficulties with supply and transport logistics stemming from the war.

“Given this situation, we do not have the opportunity to restart sales in the near future. Therefore, we have made the decision to reduce business operations in Russia,” says the message obtained by RBC.

“It is a difficult decision but we believe it is necessary.”

The company is expected to lay off at least half of its 15,000 Russia-based employees by the end of the summer, but will allow all staff to keep insurance benefits until the end of the year, according to information Obtained by the news channel Ostorozhno Novosti Telegram. Former IKEA employees will also be offered mental health support.

IKEA said it will also hold a sale on all household items currently stocked in its Russian warehouses.

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