Ikea to slash 7,500 jobs, focus on smaller stores in city centers

The shakeup at the Swedish firm, first reported by the Wall Street Journal, shows that even Ikea -- known for its massive suburban stores and affordable assemble-yourself furniture -- is not immune to the online competition that has affected other brick-and-mortar retailers.

Most of the job cuts will not hit Ikea's retail workers, but rather those in office positions including human resources and communications, the Journal said.

Meanwhile, the firm plans to create thousands of new jobs -- 11,500, or 4,000 more than it is cutting -- by opening 30 new stores in urban centers and by investing in its e-commerce and delivery offerings.