Mexico City, Mexico — The US toy company Mattel issued a statement in which it says it will lay off 2,200 workers and close its Mexican factories.
The large lay-off represents 22 percent of its total global workforce. The company, which is based in El Segundo, California, reported its second quarter results which reflected a 29 percent increase in its losses and a decrease in sales of 14 percent.
The maker of Barbie had a “complex second quarter, mainly due to the liquidation of (toy chain) Toys’R’Us”, explained the CEO and president of Mattel, Ynon Kreiz.
In an open teleconference, Kreiz revealed that the dismissals will affect administrative employees and reinforcement positions and that the decision is the result of a review to preserve the “creative and sales capabilities” of the company.
“We see many opportunities, but there has been a big discrepancy between our financial results in recent years and where the company should be,” added Kriez, chief executive since April.
Mattel lost $240.9 million dollars this quarter compared to the losses of $56.1 million in the same period of the previous year. The company said sales amounted to $840.7 million compared to $974.5 million in the second quarter of 2017.