Mattel, the toymaker behind Barbie and Sizzling Wheels, is shedding 120 staff from its El Segundo headquarters, in accordance with a discover offered to state and native officers.
The toy and leisure firm is chopping varied roles together with in advertising, design and knowledge know-how. A number of the workers held positions as managers, administrators or vice presidents on the firm, the discover states.
Employers are legally required to alert workers together with state and native officers at the least 60 days earlier than a mass layoff in what’s often known as a WARN discover. Mattel submitted the discover Monday and stated it expects affected staff will begin leaving the corporate Might 19.
The job losses are a part of a cost-cutting effort the corporate began final 12 months centered on rising Mattel’s earnings.
“They’re meant to strengthen our organizational construction to drive our progress targets and optimize our operations,” Mattel spokesperson Catherine Frymark stated in a press release. The corporate set a goal of $200 million in value financial savings by 2026.
Toy corporations have additionally been bracing for the potential results of President Trump’s tariffs on imports from Canada, Mexico and China.
In February, Chief Monetary Officer Anthony DiSilvestro instructed analysts throughout Mattel’s quarterly earnings name that the corporate has diversified the place it manufactures its toys.
Mattel expects China will symbolize lower than 40% of world manufacturing for the corporate’s toys in 2025, he stated, which is decrease than the business common of about 80%.
The corporate might additionally mitigate the potential results of tariffs by growing costs and leveraging its provide chain.
“With out entering into too many particulars for aggressive causes, we’ve flexibility when it comes to sourcing, when it comes to vacation spot, when it comes to provide chain. We are also potential pricing actions to mitigate the influence of tariffs,” DiSilvestro stated on the UBS World Shopper and Retail Convention this month.
Mattel doesn’t anticipate any single nation to symbolize greater than 25% of its world manufacturing by 2027.
Toy corporations struggled after the closure of in 2018 and amid inflation. laid off staff in 2023, citing financial challenges.
However world toy gross sales stabilized final 12 months partly as a result of a rising variety of adults are shopping for toys for themselves, in accordance with market analysis agency . This 12 months, received again rights to create motion figures and different toys based mostly on DC characters reminiscent of Batman and Superman within the second half of 2026.
Mattel’s web gross sales had been $5.4 billion in 2024, a 1% drop in contrast with the identical interval the 12 months earlier than. The corporate’s web revenue reached $542 million, up from $214 million in 2023.
The corporate expects web gross sales will improve by at the least 2% this 12 months pushed partly by gross sales of Sizzling Wheels, UNO and merchandise tied to the discharge of recent films reminiscent of Disney’s “Snow White” and the sequel to “Depraved.”
