- Toy maker Mattel announced Monday it is closing its New York office. The closure will affect roughly 100 employees. The move is part of a previously announced $650 million cost savings plan.
- Toys R Us was Mattel's second-largest customer and retailer of many of its exclusives. Without its chain of stores to showcase its products.
Toy maker Mattel announced on Monday that it is closing its New York office, as part of a previously announced $650 million cost savings plan.
The closing, which will take place in phases through the rest of the year, will affect roughly 100 employees.
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 U.S., he said. They include: Los Angeles, East Aurora (its Fisher-Price store), Middleton, Wisconsin (its American Girl store) and London (its Thomas & Friends store).
It had announced a cost savings program in October, with the goal to eliminate $650 million over two years, one-third of which it expects to achieve this year. It also suspended its quarterly dividend.
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The toy company has had a tough year, deeply impacted first by the bankruptcy — and now the liquidation — of Toys R Us.
Toys R Us was Mattel’s second-largest customer and retailer of many of its exclusives. Without its chain of stores to showcase its products, it will need to resort to Amazon and profit-squeezing big box stores.
“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 percent for the year, and reported an adjusted loss per share of $1.08.
Date: Apr 09, 2018