Ikea to sell factories and cut jobs in Russia over its invasion of Ukraine

Ikea plans to sell factories, shut down offices and reduce its workforce of nearly 28,000 in Russia over Moscow's invasion of Ukraine, the Swedish furniture retailer announced on Wednesday.

The world's biggest furniture brand in early March said it would temporarily close stores and postpone sourcing in Russia as it and other corporations moved to comply with Western sanctions. 

Ikea's retail business in Russia and Belarus will stay shuttered and its workforce reduced, affecting "many co-workers," the company stated on Wednesday. Ikea first came to Russia in 2000.

"The circumstances have not improved, and the devastating war continues," Ikea said in the statement. "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."

The company will begin looking for buyers of its four factories in Russia, permanently close two purchase and logistics offices in Moscow and Minsk, and reduce staff, it said. 

Recent weeks have seen both the Starbucks logo and McDonald's Golden Arches dismantled in Russia after both chains exited the country over its war in Ukraine. Russians saw more than a dozen McDonald's restaurants reopen on Sunday under new branding and new Russian ownership.