Lego to cut 1,400 jobs as sales slide
8 September, 2017
Toymaker Lego announced it is to cut 1,400 jobs worldwide, or 8% of its 18,200-strong workforce, due to falling sales and profits, news wires reported. So far, it is not clear which regions and states will be mostly affected by the measure. Lego's half-year results show revenues falling by 5% to 14.9bn Danish krone ($1.3bn), with profits down 3% to 4.4bn krone.
Lego chairman Jorgen Vig Knudstorp said the group had become an “increasingly complex organisation” following double-digit global growth in the past five years, but that meant it had “added complexity into the organisation which now in turn makes it harder for us to grow further.”
In the last years, Lego's sales have been increasing in new markets, particularly in Asia, but have fallen in established markets. “In the US and Europe, our sales have declined although we are working hard with our partners to regain momentum,” Knudstorp pointed out.
Knudstorp hinted the company would be concentrating harder on the brick kits, but without going entirely back to basics. “The brick is the heart of our business and children of all ages love it. We will find more opportunities,” he pointed out.