EMCC European Monitoring Centre on Change

Mattel

Company/Organisation:
Mattel

Geographic Location

Country: World
Location of affected unit(s): United States, Mexico, various locations

Company

Sector: Manufacturing
Other manufacturing, and repair and installation of machinery and equipment
32.40 - Manufacture of games and toys
Number Employed: 10000

Employment Effects

Announcement Date: 25-07-2018
Planned Job Reductions min: 2200
Planned Job Reductions max: 2200
Type of Restructuring: Internal restructuring
Employment Effect Start: 26-07-2018
Direct Dismissals: 2200

Additional Information

Mattel, a leading global children's entertainment company that specialises in design and production of toys and consumer products (Barbie, American Girl and Hot Wheels brands), has announced over 2,200 job cuts worldwide, representing 22% of global non-manufacturing workforce, as well as planned sale of manufacturing sites in Mexico. The job cuts will mainly affect support functions and back-office, according Mattel. In its press release, Mattel blamed 'higher materials costs, higher obsolescence, and unfavourable product mix' for a decrease in its gross margin to 30.1 per cent, down from 41 per cent in the same quarter in 2017. 'We are in a turnround and as expected, had a challenging second quarter driven primarily by the Toys 'R Us liquidation,' said the new chief executive. Due to the Toys 'R' Us liquidation, Mattel has seen its sales dropping by about 11% between April and June 2018.

Mattel previously restructured with 1,000 jobs cuts in 2009.

 

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