STORY: Russia used to be a big market for IKEA.
But it looks like those days are gone.
The Swedish furniture giant said Wednesday (June 15) that it planned to sell factories and close offices there.
It will also reduce its nearly 28,000-strong workforce.
Ingka Group, which owns the IKEA stores in Russia, said there was no prospect of a return to normal operations any time soon.
However, the 14 malls that it also owns there will remain open.
Back in March, IKEA shut its stores in Russia, and paused sourcing goods there.
But it kept paying employees, and will continue to do so until the end of August.
Now brand owner Inter IKEA says it will seek new owners for four factories.
It did’t give details on exactly how many staff will be cut.
The firm hinted it might open the stores one last time to sell off stock.
IKEA is one of more than 1,000 Western firms to scale back in Russia since the conflict began in Ukraine.
Some, such as McDonald’s, have sold to local buyers.
Its restaurants have started reopening under new ownership and branding.