El Segundo, California-based Mattel has announced that it will be laying off 2,200 workers, mostly its non-manufacturing workforce in a massive restructuring in response to lagging sales and increasing losses. In announcing Second Quarter results, Mattel CEO Ynon Kreiz noted, “Mattel is a company with great potential. We see a lot of opportunities, but there has been a big discrepancy between our financial performance over the last few years and where the company should be.” Joseph Euteneuer, CFO of Mattel added: "We are pleased to report that our two-year $650 million Structural Simplification program is on-track.
There is no doubt that Mattel has been severely impacted by the use of electronic devices at earlier ages and the loss of one of the nation’s top toy retailers, Toys R Us which was Mattel’s second largest customer. “We are in a turnaround and as expected, had a challenging second quarter driven primarily by the Toys "R" Us liquidation.” Mattel also noted that they will be selling manufacturing facilities in Mexico in response to changing capacity requirements. For those wanting to read the full story, Mattel’s News Release can be found here.
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