Mattel announces 2,200 job cuts
More than a fifth of non-manufacturing workforce to be axed globally as sales slump in wake of TRU liquidation
More than a fifth of Mattel's non-manufacturing jobs are to be cut globally following a soft second quarter that saw sales slump 14 per cent.
In total, 2,200 jobs are to be axed around the world, and the toy giant will also sell factories in Mexico.
Mattel points to the demise of Toys R US, which has this year disappeared from high streets, shopping malls and retail parks around the world,for the worse than expected performance. Rising costs in materials and an "unfavourable product mix" were also contributing factors.
"We are in a turnaround and, as expected, had a challenging second quarter driven primarily by the Toys R Us liquidation," said Ynon Kreiz, the firm's recently appointed new CEO, who replaces former boss Margo Georgiadis who quit in April.
On the bright side, Mattel's premier brands continued to perform well.
"We saw continued strong performance by Barbie and Hot Wheels, and we made substantial progress on our structural simplification programme to restore profitability and improve productivity in the near-term," added Ynon.