Mattel, the major toymaker known for brands like Barbie and Hot Wheels, is laying off 120 workers.
The El Segundo, CA-based company disclosed the planned cuts via a California-mandated WARN notice to state and local officials. The workers who are exiting held titles including manager, director and VP, according to the notice, which was included in a publicly available report by the Employment Development Department.
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The number of workers leaving is a small fraction of the company’s total workforce of 34,000 as of the end of 2024. (It has 9,400 non-manufacturing global employees.) The reductions follow an announcement last year of a cost-cutting effort designed to boost profits and achieve $200 million in cost savings. The cuts “are intended to strengthen our organizational structure to drive our growth objectives and optimize our operations,” a Mattel spokesperson told Deadline in a statement.
The move also comes as widespread tariffs being implemented by President Donald Trump are challengins manufacturers in a range of industries.
Canada, Mexico and China have been hit with tariffs on certain goods in a campaign by the White House whose start-and-stop cadence has roiled financial markets in recent weeks.
Mattel CFO Anthony DiSilvestro has reminded investors in recent weeks that the company has worked for several years to diversify its manufacturing process to change where it manufactures its toys. He has also said pricing changes could be an option in light of the tariffs. China, which generally represents about 80% of global production for the toy business, will account for less than 40% of Mattel’s total output in 2025, DiSilvestro said on the company’s fourth-quarter earnings call last month.
While the traditional toy retail business remains a core revenue source for Mattel, it has recently expanded its strategy to encompass entertainment. Barbie, the Warner Bros film based on the classic doll, was the highest-grossing movie of 2023. The company also recently set a major licensing agreement with Warner’s DC, spanning a number of high-profile properties.
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