Mattel Plans to Cut 2,200 Jobs
Wednesday, July 25, 2018
Amidst revenue loss for a fourth straight quarter, El Segundo-based Mattel Inc. plans to cut 2,200 of its workforce, the company announced in its second-quarter earnings released July 25.
The toymaker’s job cuts will hit 22 percent of its global workforce in “non-manufacturing” sectors, affecting mostly the corporate-side of operations. However, Mattel said that it’s planning the sale of several manufacturing sites in Mexico.
The company’s job cuts are part of the $650 million restructuring plan it announced last year as it continues to reel from the liquidation of Toys R Us.
The maker of Barbie and Hot Wheels toys reported second-quarter revenue of $840 million ($0.70 a share), down 14 percent from $974 million ($0.16 a share) from second-quarter 2017. Net loss in the quarter was $240.9 million, ($0.70 cents per share) from $56.1 million ($0.16 cents per share) compared to the same time period a year earlier.
“We are in a turnaround and as expected, had a challenging second quarter driven primarily by the Toys R Us liquidation,” said Mattel’s Chief Executive Ynon Kreiz in a statement. Ynon took over the helm from Margo Georgiadis in April.
Mattel’s stock price fell 8.23 percent to $14.95 in after hours trading on Wednesday.