MEMPHIS, Tenn. — IKEA says it is expanding its onsite fulfillment services at its Cordova location, but will not be closing the store.

An IKEA employee, who wanted to remain anonymous, said they were one of 16 people, or a little over 10% of the workforce, being laid off at the end of August.

“We’ve not made any profit since we opened,” they said.

Employees also provided WREG with a copy of an email from the company, which said that four months ago, IKEA began implementing changes, including reducing commercial space and preparing to become a fulfillment center to improve business.

The email also stated that IKEA was restructuring the Memphis team by reducing salaried and full-time positions and introducing five new roles, which would translate to nine open positions.

IKEA also informed employees that it was closing both the customer and co-worker restaurants, increasing the Bistro offer, and relocating the Swedish Food Market to a different area of the store.

IKEA wouldn’t confirm the layoffs but released a statement about the changes to the business.

At IKEA, we are continuously renewing and improving our business model to become more accessible, affordable, and sustainable. As part of our ongoing growth and transformation journey, we are implementing some changes at IKEA Memphis to better align with the evolving needs of our customers and the market, which includes expanding our onsite order fulfillment capabilities. Customers can still enjoy an in-store shopping experience or pick up their online orders at the store. As these changes are implemented, we are working closely with our co-workers to identify new opportunities within the company.

IKEA opened its Cordova store off Germantown Parkway in December 2016. It was the first IKEA store in the state of Tennessee.

At the time, city officials hoped the big box retailer would attract customers from around the region and benefit other businesses in Memphis.

In 2025, IKEA unveiled a redesign of the Cordova store, which included a new Central Planning Hub to help customers plan and order home furnishings solutions.

According to IKEA’s website, alongside renovations like IKEA Memphis, IKEA U.S. has made significant investments to boost its e-commerce experience.