Last Updated on January 3, 2020 by Danielle
Over the duration of the year, Mattel plans on closing down its New York office in phases, resulting in savings of $650 million.
Toymaker Mattel announced over the course of the year, it plans on closing its New York office in phases, which will impact roughly one hundred employees and result in cost savings of $650 million.
Reportedly, Mattel’s New York office is not a strategic location for the company. Most, if not all, of these 100 employees will be relocated to other locations across the United States, like Los Angeles, East Aurora, Middleton Wisconsin, and London in the United Kingdom.
Last October, Mattel had previously announced this cost savings plan to reduce expenditures by $650 million over the course of a two year period. Mattel anticipates on achieving at least one-third of this plan this year.
Mattel has been heavily impacted by Toys R Us’s bankruptcy and liquidation, as Toys R Us is Mattel’s second biggest customer and showcased many of its exclusives.
Margo Georgiadis, Mattel’s CEO, stated to analysts: “Our fourth quarter performance reflects a tough quarter as part of what was a difficult and extraordinary year for Mattel.” For all of last year, Mattel’s net revenue declined 11 percent.
Source: Toy News