Toymaker Mattel Inc. announced April 19 that its chief executive officer, Margo Georgiadis, is leaving the company to take up the top executive position at Ancestry, a consumer genomics company.
Georgiadis, a former Google executive is heading back into the tech world and will officially leave her post at Mattel on April 26. Her role as chief executive for Ancestry will start on May 10.
Mattel’s new chief executive is Ynon Kreiz, the former CEO of Maker Studios which was acquired by Disney for $675 million in 2014. Kreiz joined Mattel's board in June last year and will be its fourth chief executive in four years.
The El Segundo-based company’s shares were down 3 percent, trading at $13.45 following the announcement on Thursday. The company’s stock has decreased by more than 40 percent year-to-year.
Mattel has struggled with sales of its iconic toys over the last few years. It attributed its poor financials to weak demand across its core brands including Barbie, Hot Wheels and Fisher-Price products. The bankruptcy of retailer Toys R Us was also a factor. The retail chain accounted for approximately 15 percent to 20 percent of Mattel’s revenue.
Georgiadis tried to stem the bleeding over her 14-month tenure by implementing management changes, suspending dividends and announcing a plan to cut $650 million in costs. Still, the company’s income declined from $1.05 billion in 2016 to $318 billion in 2017 and revenue fell from $5.4 billion to $4.8 billion over the same period.
Manufacturing and trade reporter Shwanika Narayan can be reached at firstname.lastname@example.org or 323-556-8351. Follow her on Twitter @shwanika.
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- Ynon Kreiz