Mattel cuts 120 jobs in cost-cutting measures

Mattel, the well-known toy company that makes products like Barbie and Hot Wheels, is planning to lay off 120 workers. This news came from a notice the company filed with California state officials. The affected employees hold positions such as manager, director, and vice president. This layoff affects a small part of Mattel's overall workforce of around 34,000 employees as of late 2024. The cuts are part of a larger strategy aimed at saving costs and increasing profits. Mattel is looking to save about $200 million through these efforts. A company spokesperson stated the layoffs are meant to improve the organization and support growth. The layoffs happen during a time when tariffs imposed by the U.S. government are creating challenges for many manufacturers. Toys made in Canada, Mexico, and China are particularly affected by these tariffs. Mattel's Chief Financial Officer, Anthony DiSilvestro, said the company is working to change its manufacturing locations due to these tariffs. By 2025, less than 40% of Mattel's toys will be made in China, down from about 80%. While traditional toy sales are still important for Mattel, the company is also focusing on entertainment. The recent Barbie movie, which was produced by Warner Bros, was the top-grossing film of 2023. Additionally, Mattel has signed a significant licensing deal with Warner Bros that includes several popular brands.