WORLD NEWS

Mattel to close New York office

Published on: 10th April 2018

The closure will affect roughly 100 employees as part of a previously announced $650m cost savings plan.

The closure will take place in phases through the rest of the year. The office was not a strategic location for the company, a spokesperson told CNBC. Most or all of the employees will be relocated to one of its other principal locations in the US, he said. They include: Los Angeles, East Aurora (its Fisher-Price store), Middleton, Wisconsin (its American Girl store) and London (its Thomas & Friends store).

Mattel had announced a cost savings programme in October, with the goal to eliminate $650m over two years, one-third of which it expects to achieve this year. It also suspended its quarterly dividend.

The toy company has had a tough year, impacted first by the bankruptcy — and now the liquidation — of Toys R Us. The retailer was Mattel’s second-largest customer and host of many of its exclusives.

“Our fourth-quarter performance reflects a tough quarter as part of what was a difficult and extraordinary year for Mattel,” Mattel CEO Margo Georgiadis recently told analysts at a company earnings call.

Mattel saw net sales drop 11% for the year, and reported an adjusted loss per share of $1.08.

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