Toymaker Mattel Inc. said Thursday that it is cutting 1,000 jobs companywide due to a grim outlook for the upcoming holiday shopping season.

The company best known for making Barbie dolls said it is cutting 3 percent of its employees worldwide with a combination of layoffs, attrition and retirements, according to an Associated Press report.

The reorganization will reduce Mattel’s professional and management staff by 8 percent. The company said approximately 170 jobs were cut at its headquarters in El Segundo.

Last month, the company reported third-quarter profit increased less than 1 percent to $238.1 million, below analyst expectations. Sales rose 6 percent to $1.95 billion.

Mattel shares closed down 46 cents, or 3 percent, to $14.52 on the New York Stock Exchange.