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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsA Toys R Us death blow: Mattel to lay off 2,200 workers
Mattel, the maker of Barbie and Hot Wheels, said Wednesday it is laying off 2,200 workers or 22 percent of its corporate workforce as sales slide following the liquidation of Toys R Us.
The toy giant, based in El Segundo, Calif., said sales fell for the fourth consecutive quarter as it struggled to make up for lost business from the closure of nearly 800 Toys R Us stores across the country. Revenue dropped 14 percent to $841 million in the most recent quarter, while losses continued to mount.
There has been a big discrepancy between our financial performance over the last few years and where the company should be, chief executive Ynon Kreiz said in a statement.
Shares of Mattel fell as much as 9 percent in after-hours trading following the announcement.
https://www.washingtonpost.com/business/2018/07/25/toys-r-us-death-blow-mattel-lay-off-workers/?noredirect=on&utm_term=.3ce1c56efee0
Renew Deal
(81,801 posts)And very sad. I wonder if losing Toys R Us will change how kids play.
Sherman A1
(38,958 posts)to a degree some of that has already happened with the changes to electronic devices. This will be a tough shakeout for the toy and game companies.
kimbutgar
(20,871 posts)When the factory was in Hawthorne, Ca. She gave me a Barbie once that had two faces. I think I still have it somewhere under my house with my other barbies.
This is so sad. I also worked my only retail job at Toys R us during Christmas once. Terrible job, the kids were ok but the parents were rude if you couldnt find the hot toy they waited until the last minute to buy.
Sherman A1
(38,958 posts)a situation that has gotten much worse over time. Holidays are especially "entertaining" in their own special way. Did it for over 4 decades and happy to be done with it.
poetshepherd
(37 posts)Sears should diversify, add Toys-R-Us dept to its stores. Partner w/ Amazon on store pick ups. Above all, survive.
Omaha Steve
(99,055 posts)leftstreet
(36,076 posts)JHB
(37,128 posts)Generic Brad
(14,270 posts)Or could it be that there is a less viable way to get toys to market due to the closure of Toys R Us?
Sherman A1
(38,958 posts)Toys R Us being a major Retailer in this category, was also a major conduit for toy sales. The loss of the shelf space and impulse sales will hurt such manufacturers as Mattel, Hasbro and many others. Even with Target expanding it's board game category over the last few years, this will likely not make up for Hasbro numbers from what I read in a prior article months ago. The loss of any player in the distribution network hurts everyone else in that network.
Tipperary
(6,930 posts)I have noticed for years now that on Christmas morning, when all the kids used to be outside on new skates, bikes, skateboards etc., I never see kids outside. I think it is very sad.