Swedish kitchen furniture manufacturer Nobia will cut jobs across the group and close offices in China and Lithuania under a programme targeting annual savings of SEK 150 million (\u20ac13.7 million), as it reduces costs following its withdrawal from the UK market.<\/p>\n
Announced on 3 November, the measures will begin in the fourth quarter of 2026, with the full annual savings expected from the fourth quarter of 2027. Nobia has not disclosed how many positions will be eliminated.<\/p>\n
The company will close its Shanghai sourcing office and its shared services centre in Vilnius, which handles IT, human resources and finance. It has also terminated the lease on its current headquarters and plans to move to new premises in the second quarter of 2027.<\/p>\n
The programme follows a review of spending across brands, countries and corporate functions, and implements the Nordic organisational structure announced in August.<\/p>\n
Chief executive Jesper Gylling Olsen said Nobia still carried costs suited to a larger, more geographically diverse company. Its remaining operations are also contending with the ramp-up of Nobia Park and unfinished supply chain consolidation.<\/p>\n
UK withdrawal announced in January<\/strong><\/p>\n The latest cuts follow the decision announced on 14 January 2026 to sell Nobia\u2019s UK operations to funds managed by Alteri Partners LLP. The agreement covered all British legal entities, including the Magnet, Gower, Commodore and CIE brands. The transaction was completed on 2 March.<\/p>\n Nobia\u2019s January announcement set out a shift towards Nordic markets, where the company said it had stronger margins and greater scope to coordinate production. Its UK business had struggled to earn sustainable returns, with difficult trading after Brexit and the pandemic compounded by continuing investment requirements in the store network.<\/p>\n The UK division had recorded an operating loss of SEK 108 million on sales of SEK 4.36 billion in the 12 months to September 2025. No purchase price was payable at completion; the buyer assumed the business and its retail lease obligations, with a possible future payment linked to its subsequent performance.<\/p>\n Alongside the planned exit, Nobia announced a rights issue of approximately SEK 1.5 billion to strengthen its finances. The company confirmed in March that the issue was fully subscribed, without calling on the underwriting guarantees.<\/p>\n Profit remains under pressure<\/strong><\/p>\n Results published on 4 November showed third-quarter sales of SEK 1.275 billion (\u20ac116.2 million), up from SEK 1.262 billion a year earlier. Currency movements supported the increase, while organic sales fell by less than 1%. Adjusted operating profit declined to SEK 47 million (\u20ac4.3 million) from SEK 69 million. Nobia AB<\/p>\n Demand from business customers remained subdued, while consumer demand fluctuated. In Finland, Nobia is winding down the loss-making Novart business and directing investment towards HTH, a transition expected to weigh on near-term sales.<\/p>\n Nobia Park, the automated factory in J\u00f6nk\u00f6ping, remains central to the group\u2019s manufacturing plans. Production volumes and delivery performance are being stabilised, and Nobia expects to present the outcome of its review of the plant\u2019s ramp-up and wider supply network in early 2027. Nobia AB<\/p>","protected":false},"excerpt":{"rendered":" Swedish kitchen furniture manufacturer Nobia will cut jobs across the group and close offices in China and Lithuania under a programme targeting annual savings of SEK 150 million (\u20ac13.7 million), as it reduces costs following its withdrawal from the UK … Continue reading