Funko says the staff cuts are part of initiatives to re-balance its cost structure into prioritized areas that will drive long-term growth and improve margins.

Funko has announced that the company is undergoing a significant restructuring. A securities filing on Friday revealed that it plans to lay off between 180-200 employees, representing about 12-13% of its workforce.

Funko said it expected to incur charges of up to $2.8m associated with the layoffs, but that it will result in $20m to $22m of annualised run rate cash savings. The company says it is choosing to slash its staffing level as “part of the company’s initiatives to re-balance its cost structure into prioritized areas that the company believes will drive long-term growth and improve margins. As the company focuses on these goals, it is consolidating functions and eliminating or reducing investment in areas of lower focus.”

Funko has already laid off about 150 employees in a round of staff cuts earlier this year, as well as scaling back its collectible movie poster business, operating under the Mondo brand name, which it had acquired for $14m a year earlier.

Best known for its Funko Pop! figurines, which are based on entertainment, sports, and pop culture franchises, the company also produces apparel, games and other collectibles based on established IP.

The company has grown significantly over the last decade, with a changing colectibles market forcing it to expand into other areas such as games, the movie posters and vinyl records released by Mondo and NFTs. Funko went public in 2019.

Earlier this month, the board of directors announced that Brian Mariotti was to take a leave of absence and cease serving as the company’s CEO. Michael Lunsford was appointed interim CEO as the company began to search for a new CEO.

It has not been confirmed exactly where the staff cuts will take place.