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IKEA Closes Offices, Lays Off Workers
Privately held global home products retailer IKEA announced the closure of three trade offices -- in Xiamen, Fujian province; Wuhan, Hubei province and Chengdu, Sichuan province -- as part of a plan to integrate its purchasing business on May 18, reports Shanghai Evening Post. The newspaper cited an Internet user who said IKEA cut 70 employees on Monday, and intended to institute more layoffs in Shanghai, Guangzhou and Qingdao to bring total cut backs to 200. An IKEA public relations department employee said the adjustment will not temporarily involve Shanghai employees, according to the report.
Other sources said laid off employees will receive compensation in the amount of the years they worked for the company plus four, times their monthly pay, the report said.
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