It’s Getting REAL—Mattel Lays Off Nearly One-Fourth of Its Total Workforce (2,200 Employees) As Toy Sales Continue Plummeting Worldwide—Mattel Factories Too, Will Soon Be Up for Sale

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Will Matty Mattel ask for a government handout? Maybe. It looks like the giant toy company’s mascot is extending his hand, pleading for financial assistance in a “time of need.” If sales of its products continue to drop, will Mattel’s leadership seek bankruptcy protection in court—ala Toys R Us? Toy fans around the world are wringing their hands!

We’ve been talking about the “slump” toymakers Mattel (and Hasbro) have been going through for a couple of years, but the downward economic effects of that trend are now about to be be felt on a truly PERSONAL level—by over TWO THOUSAND of Mattel’s employees. Mass layoffs loom. Factories too, are slated for imminent sales and closure. According to VOA News

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“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 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. 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. 

Mattel CEO, Ynon Kreiz, said the company is working closely with other retailers and looking for more ways to sell its toys online.

Bottom Line: Mattel better get its act together. Sales are down. Factories are closing. People are losing their jobs. What else can go wrong over at the “Big M?” Stay tuned to The Joe Report!

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2 thoughts on “It’s Getting REAL—Mattel Lays Off Nearly One-Fourth of Its Total Workforce (2,200 Employees) As Toy Sales Continue Plummeting Worldwide—Mattel Factories Too, Will Soon Be Up for Sale

  1. amwic says:

    It’s the mobile phone and computer tablets that are partly to blame. Kids these days seem to be more interested in those devices. Mattel should (if they can afford it) have small, dedicated toy shops worldwide for their brand of toys, and also work hard to invent a new line of toys that would please the whole family (young and old alike). Perhaps too, they should enter the collector’s market and re-release some of their vintage toys like Hot wheels sets and cars. Skyward and water-bound toys were always popular when i was young. Mattel should explore this avenue a bit more. I’m 57 years old now and I still love my ‘man-toys’ (slot cars, Action Man, G.I.Joe, action figures, model kits, 1:32 scale toy soldiers and model trains). It’s mainly nostalgia for me. I hope Mattel pulls through. They’re a much respected toy company.

  2. kneonknight says:

    I agree to a point, amwic. However, the real blame lies in not promoting new toys and relying on computer gimmicks. Mattel is heavy on Barbie/Disney and nothing else. Remember when Mattel was swell? Thing-Maker was a huge success. I am going to say the best era of Mattel toys was the old days of cap guns and Major Matt Mason. Now, Barbie must be fat, or short, or any iteration of what the SJWs want. In the modern era, Barbie is their flag brand. If it ain’t Barbie or Disney….see how it works?

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