Mattel to cut more than 2,200 jobs after poor earnings report
Mattel says it will cut 2,200 jobs as the maker of Barbie dolls and Hot Wheels cars tries to save money.
The toy company was hurt by the closing of retailer Toys R Us, it said, with Mattel's revenue falling 14 percent in the most recent quarter. A Mattel spokesman said the job cuts are a part of the company's efforts to chop at least $650 million in costs.
Mattel, based in El Segundo, California, says the job cuts will affect office workers around the world. The company has about 28,000 total employees, around 11,000 of them in offices. Mattel also plans to sell manufacturing sites in Mexico, it said.
Shares of Mattel Inc. fell more than 9 percent to $15.15 in after-hours trading.
The company posted a loss of $240.9 million in its second quarter, or 70 cents on a per share basis. Losses adjusted for one-time gains and costs were 56 cents per share.
The results did not meet Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for a loss of 32 cents per share.
Mattel posted revenue of $840.7 million for the quarter, also falling short of Street forecasts. Seven analysts surveyed by Zacks expected $863.1 million.