Mattel Cuts 2,200 Jobs And Closes Factories In Mexico

2024 Author: Steven Freeman | [email protected]. Last modified: 2023-12-17 08:15

The company Mattel Inc., Maker of the iconic Barbie doll and other popular toys, announced Wednesday that it is cutting more than 2,200 jobs, accounting for 22% of its global workforce.

The El Segundo, California-based company released the decision to report its second-quarter earnings, which did not meet analyst expectations as revenue fell for the fourth consecutive quarter.

Like industry competitors and several department stores, Mattel has struggled with the disappearance of Toys 'R' Us, a key retailer that has been liquidating its stores after filing for bankruptcy last year.

The job cuts began this week and are part of a year-long cost-cutting plan that said it was closing its New York office, affecting about 100 employees.

"We see many opportunities, but there has been a large discrepancy between our financial results in recent years and where the company should be," added Kriez, CEO since April.

Net loss in the reported quarter expanded to $ 240.9 million, or 70 cents a share, from $ 56.1 million, or 16 cents a share, a year earlier.

Mattel's net sales fell 13.7 percent to $ 840.7 million in the second quarter ended June 30, below the $ 851.8 million analysts had expected.