US Toymaker Mattel to Lay Off 2,200 Worldwide
The closing of Toys R Us helped lead to a larger second-quarter loss
Mattel, home of Barbie dolls and Hot Wheels, is cutting 2,200 jobs in order to save money after the closing of U.S. toy retail giant Toys R Us. The toymaker said the cuts amount to 22 percent of its nonmanufacturing employees worldwide. Mattel has about 28,000 employees. It also plans to sell factories in Mexico as part of a $650 million cost-saving plan. Mattel’s stock fell nearly 9 percent to $14.85 in after-hours trading Wednesday, after dropping 1 percent during the regular trading day. Mattel reported a loss of $240.9 million in the second quarter, bigger than the $56.1 million loss in the same period a year ago. Revenues fell nearly 14 percent to $840.7 million, below the $863.1 million analysts had predicted. Ynon Kreiz, who was named CEO in April, said Wednesday that he expects the negative impact of Toys R Us closing to subside by next year. The toymaker has lagged behind its competitors in digital media, analysts say, and is trying to catch up with other brands that have spawned apps, movies and TV shows. Kreiz said the company is working closely with other retailers and looking for more ways to sell its toys online.