Lagatar24 Desk
Stockholm, March 3: In response to the conflict in Ukraine, Swedish furniture giant IKEA announced on Thursday that it would cease operations in Russia and Belarus, affecting approximately 15,000 employees, 17 shops, and three manufacturing facilities.
The war has had a huge human impact already. It is also resulting in serious disruptions to supply chain and trading conditions. For all of these reasons, IKEA has decided to temporarily close operations in Russia,” said the company in a statement to AFP.
The suspension mostly affects Russia, where the Swedish conglomerate has been since 2000 and is one of the major Western employers.
According to IKEA, operations in Belarus would be terminated as well, despite the fact that the country only has a few suppliers and no stores.
“The devastating war in Ukraine is a human tragedy, and our deepest empathy and concerns are with the millions of people impacted,” the company said.
“These decisions have a direct impact on 15,000 IKEA co-workers, and the company groups will secure employment and income stability and provide support to them and their families in the region,” the company added.
While the group’s stores employ the majority of the impacted workforce (12,000 people), IKEA also employs roughly 2,500 people in manufacturing, with three facilities in Russia.
According to the corporation, the move will affect 47 Russian suppliers and 10 Belarus suppliers, as well as halting imports and exports between the two nations.
IKEA had previously stated that it will keep its stores open in Russia, which drew criticism in Sweden.
