Mattel is cutting 120 jobs in May at its El Segundo headquarters, part of a cost-savings initiative that will save the company millions of dollars by 2026.
The layoffs, described in March 17 letter to the state’s Employment Development Department, will affect dozens of employees in management positions in its marketing, design and information technology departments.
Mattel’s letter to EDD says the job cuts begin May 19.
“We greatly value the contributions of all our employees and do not take any action regarding our workforce lightly,” the letter states. It was signed by Ahlan Williams with the company’s Employee Compliance department.
Just days before the WARN letter was sent, company executives shared Mattel’s financial condition at the USB Global Consumer and Retail Conference, held March 13 in New York City.
Chief Financial Officer Anthony DiSilvestro said that of the $200 million, 30% is coming from SG&As or “selling, general, and administrative” expenses.
Chief Executive Officer Ynon Kreiz at the same conference said Mattel ended 2024 “with $1.4 billion of cash after we spent $400 million to buy back shares.”
“So financially, the company today, we believe, is in the strongest position it’s been in many, many years,” he said.
Despite flat sales in 2024, Kreiz said the toy industry is growing, with the last two years being the most recent exception. “Post-COVID and after — or when movies are now returning, we believe the industry will return to its normal cadence.”
Mattel’s CFO said the company was watching “the tariffs situation,” with toy pricing “likely to enter the mix this year given the potential actions that we would take on that front.”