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What IKEA Did With 8,500 People When a Chatbot Took Their Jobs

A.Ideal Team
A.Ideal Team
6 min read
What IKEA Did With 8,500 People When a Chatbot Took Their Jobs

Sarah works in a call centre. She handles complaints, answers the same ten questions about delivery times, and spends a portion of every shift explaining return policies she knows by heart.

She is good at her job. She is also wasting it.

That is the uncomfortable truth buried inside the automation debate — and IKEA just proved it, at scale, to the tune of €1.3 billion.


The Fear Every Business Owner Carries

Ask any founder whether they have considered automating parts of their operation and the conversation eventually arrives at the same place.

"We'd love to. But what happens to our people?"

It is a legitimate concern. Not a soft one. A genuine, human one. Business owners who have built teams, watched people grow, and taken responsibility for livelihoods do not treat headcount as a line on a spreadsheet. The idea that automation means redundancies — that efficiency comes at a human cost — is the single biggest brake on adoption in UK SMBs right now.

And it is built on a false premise.


Here Is the Flip

The fear is not that automation will take people's jobs. The real risk is that it will take their time — and give them nothing worth doing with it instead.

IKEA did not automate its call centres and cut 8,500 people. It automated the dull half of their jobs, freed up 8,500 people from the work that was wasting them, and pointed them at something far more valuable.

The question was never "what happens to our people if we automate?" It was always "what could our people be doing, if they weren't drowning in this?"


1. The IKEA Story — What Actually Happened

In 2021, IKEA's parent company Ingka Group introduced a chatbot called Billie — named, appropriately, after their famous Billy bookcase.

Billie was built to handle the routine: delivery updates, return queries, stock questions, opening times. The calls and messages that had a fixed answer and no need for human judgment.

By 2023, Billie was handling 47% of all customer enquiries directed to call centres. That is 3.2 million interactions resolved without a human picking up the phone. The operational saving: nearly €13 million.

Now here is the critical decision point.

8,500 call centre staff suddenly had capacity. IKEA could have used that to reduce headcount and trim its cost base. That would have been the conventional read of the situation.

Instead, they looked at what was landing in Billie's too-hard pile. The complex enquiries being escalated to humans were clustering around one theme: interior design. Customers did not just want to know whether the sofa was in stock. They wanted to know whether it would work in their living room.

IKEA reskilled those 8,500 people as interior design consultants. Billie handled the admin. The humans handled the conversations that required taste, experience, and genuine expertise.

The remote interior design service — operated by phone and video call — generated €1.3 billion in sales in the 2022 financial year alone. That is 3.3% of total revenue, from a business line that barely existed before. IKEA's target is to grow that to 10% by 2028.

Billie did not eliminate 8,500 jobs. It revealed them.


2. The Maths Nobody Does — What Manual Work Actually Costs

Before any business owner can make a clear-headed decision about automation, they need to do one calculation.

Take a task your team does manually, repeatedly, every week. Pick any one.

Say it takes 90 minutes each time. It happens three times a week. Two people do it.

That is nine hours a week. 468 hours a year. At a fully-loaded cost of £31.25 per hour — a £50,000 salary across approximately 1,600 productive working hours — that single task is costing your business £14,625 every year.

For one process.

Now ask what those 468 hours could be worth if pointed at something higher-value. Client relationships. Business development. The work you are always too busy to get to.

That is not a redundancy calculation. That is a redeployment calculation. The maths is not about what automation saves — it is about what it unlocks.


3. The Old Way and The New Way

This is how most UK SMBs are operating right now:

The Old Way:

  • Your most experienced people spend the majority of their time on routine, repeatable tasks
  • Those tasks are done manually because "that's how it's always been done"
  • Growth means adding headcount to absorb the volume
  • Skilled people are used as a filing system

The New Way:

  • Routine, high-volume work is handled automatically
  • Your experienced people handle what genuinely requires their expertise
  • Growth is absorbed by the automation layer, not the payroll
  • Skilled people are used as the asset they actually are

Result: the same team, producing more value — without a single redundancy.

This is not a technology story. It is a resource allocation story. And IKEA is not a special case. It is a proof of concept.


4. The Bigger Picture — What This Means for Your Business and Your People

Here is the argument that rarely gets made.

The businesses that resist automation are not protecting their teams. They are trapping them.

Think about Sarah. She has spent years developing knowledge, instinct, and expertise. Every day she applies a fraction of that capability to answering the same questions she could answer in her sleep. She is not growing. She is not challenged. And when the business eventually does automate — because the competitive pressure to do so will not ease — she will be further from the reskilled version of herself that the new role requires.

The businesses that automate thoughtfully, like IKEA, are not diminishing their teams. They are investing in them. Reskilling is a long-term asset. An employee who has been developed into a higher-skilled role is more valuable, more engaged, and more likely to stay.

The economic argument runs the same way. A business that generates €1.3 billion from a reskilled workforce contributes more — in wages, taxes, and spending — than one that kept 8,500 people in roles that were never going to grow.

Automation done right is not a cost-takeout strategy. It is a growth strategy. For the business, for the team, and for the economy around it.


Summary

The fear of job displacement is real. It should not be dismissed. But it is pointing at the wrong target.

The risk is not automation. The risk is automation without intention — deploying technology to eliminate cost rather than to unlock capability.

IKEA automated 47% of its customer service and did not lose a single person. It found €1.3 billion. The businesses that will win the next decade are the ones that ask not "what does automation replace?" but "what does automation make possible?"

Your team is capable of more. The manual work is just in the way.


Ready to Find Out What Your Team Could Be Doing Instead?

That is exactly what the AI Opportunity Audit is for. We map the manual processes that are eating your team's time, calculate the real cost, and show you what becomes possible when that capacity is freed up.

No cost. No obligation.

Book your free Audit here: www.aideal.group/

Thanks for reading!

Thanks for reading!