Companies Mattel's toy company in the world cuts nearly 8% of the workforce

Business

After Toys Toys R & Us' toy chain, one of the world's leading toy makers, Mattel, has announced drastic measures to reduce costs. This includes the removal of more than 2,200 of Mattel's 28,000 employees worldwide

The Chain Crumble

Closing Toys R & Us makes a turning point for all major toy manufacturers. The company's physical stores were one of the main channels through which Mattel distributed popular products such as Barbie and Hot Wheels. With the failure of Toys R & Us, Amazon's largest online retailer, has consolidated its dominant position (with over 80% market share) in the next sector, writes AP . find new distribution channels. Mattel's financial results also showed losses from the closure of Toys R Us. According to the report, producer losses reached $ 240 million in the second quarter, while revenues fell 14% to $ 840 million.

Internal Changes

Mattel also undergoes a number of internal changes. In April, the new CEO Inon Kraitz was appointed. Following the new cuts, the company's management structure should be reduced to bring new products more quickly

In a press release, Kraitz commented that Mattel is working on agreements with various distributors looking for different channels to sell their products.