In order to save money Mattel, maker of Barbie and Hot Wheels has decided to cut off over 2,200 jobs in the company.
After Toys R Us, one of America’s biggest toy retailers officially closed its doors last month, many toy maker companies have suffered gravely, one of which is Mattel. With losing one of its partners in selling its product, the company has not been able to generate the sufficient income they used to get when the said toy retailer was still open. Until now they haven’t yet recovered from the tragedy and if they will not take action, they might be the next one to follow the step of the toy retailer.
Due to this reason, the Barbie-maker has decided to cut off jobs in order to meet its goal of lessening the company’s cost of about $650 million. The company has about 28,000 employees and an estimated eight percent would be affected by this event.
Mattel’s revenue had been down to 14 percent for the last few quarters. During the second quarter this year, the company had recorded a $240.9 Million loss or about 70 cents per share.
Through all that is happening, it is ironic that the company has a positive view on thwarting the negative effect of Toys R Us on them. Saying that next year would be a new beginning for them and will be a great opportunity to gain all that they have lost. Mattel will stop at nothing to be on top again, especially now that some of their biggest competitors has been gaining a lot amidst the problem at hand.
Currently, the company is on the verge of looking at new retailers to sell their products and they are also starting to make it available online for a bigger chance of gaining what they have lost.
Hopefully, Mattel can get back to its feet again so that events like this won’t happen in the future as many people can be affected by their decisions.