Ikea to axe 300 managers in shake-up of British stores

The furniture manufacturer and retailer said today that a "reorganisation" of the way it worked would result in fewer layers of management and open the way for co-workers to take on greater responsibility.

But union representatives expressed disappointment at the "shock" announcement and are seeking an urgent meeting with Ikea to discuss the business plan.

The Swedish-owned firm currently has a 9,000-strong workforce operating throughout 15 stores in the UK.

Last year, the group saw global profits increase by 17 per cent, while the number of international stores increased by 16.

The announcement is aimed at making its UK outlets more "customer focused", according to the furniture giant.

The group has also been hit by increasing competition in the home furnishings and furniture market in recent years, particularly from new homes ranges launched by supermarkets and retailers such as Marks & Spencer and Zara.

A statement from Ikea read: "Our new store structure will have fewer layers of management providing an opportunity for co-workers to take on more responsibility.

"This means out of our 9,000 co-workers around 300 managers will be affected."

It added that those hit would be given the opportunity to apply for positions within "upcoming new stores".

Responding to the announcement, Paul Clarke, spokesman for shopworkers' union Usdaw, said: "We are seeking an urgent meeting with Ikea to examine in detail the business plans behind what is clearly a significant restructuring of their management and supervisory grades.

"Usdaw has significant membership in Ikea and will look at business plans to minimise the impact on a hard-working and loyal staff that has delivered the goods on the shop floor for a number of years."