Mattel lays off 70 employees amid continuing financial struggles
Mattel Inc. laid off 70 employees earlier this month, according to a California Employment Development Department report.
Mattel had 32,000 employees as of last December, according to its Security and Exchange Commission filings.
The cuts, which were effective Dec. 8, come during a time of financial struggle for the El Segundo-based toymaker, whose brands include Barbie, Fisher-Price and Hot Wheels. The company has been looking into cost-saving measures since the third quarter of 2017.
“Cost reduction and efficiency enhancing” plans for Mattel include outsourcing the production of certain brands, eliminating underperforming retail locations and prioritizing ad spending, according to securities filings.
“These cost saving initiatives were identified through a systematic, company-wide process … and challenged all aspects of how Mattel does business,” Mattel said in its report.
Mattel said in the filing its sales would suffer this holiday season because some of its brands are underperforming. Toys R Us, one of Mattel’s major customers, filed for bankruptcy protection in September and owes Mattel $136 million.
The toymaker predicted a decline in sales of “a percentage in at least the mid-to-high single digits” compared with 2016. It also expected to incur $200 million in severance and restructuring costs until 2019.
alejandra.reyesvelarde@latimes.com
Twitter: @r_valejandra
