IKEA will sell its four factories in Russia and leave the retail business in the county stopped, which will result in a reduction of workforce, the company said in a statement on Wednesday.
"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. As a consequence, Inter IKEA Group and Ingka Group have now each decided to enter a new phase to further scale down the IKEA business in Russia and Belarus. The IKEA Retail business will remain stopped, and the workforce will be reduced, meaning that many co-workers will be affected. In order to support the scaling down process, Ingka Group plans to sell out its home furnishing inventory in Russia," the statement said.
The Inter IKEA owned Industry business in Russia will start the process of finding new ownership for all four factories in the Leningrad, Kirov and Novgorod regions, the company added.
Mega malls will continue operating and providing consumers with access to necessary goods. Khimki Business Park will also continue working, the company said.
The Inter IKEA group of companies announced suspension of business processes in Russia and Belarus on March 3.
