Mattel have accelerated a planned 4% reduction of non-manufacturing workforce. The action was designed to “streamline organizational structure and restore profitability.” The plan was pushed up due to the impact of the pandemic. The company expects to save $40 million in cost savings in 2020.
The company reported a loss in its first quarter financial reports released at the end of trading today. The company lost $150 million compared to the same period last year. Net sales were down 12%.
Like Hasbro, Mattel said global manufacturing and distribution capacity have largely been restored, and they expect to meet product demand for the second half of the year.
Game sales were not readily apparent as Mattel includes them in a mixed category. The gross sales for Action Figures, Building Sets and Games were $181.1 million, down 21%. The company did say this was partially offset by the growth in UNO.