Home Business NewsBusiness Lego to cut 1,400 jobs as sales and profits fall

Lego to cut 1,400 jobs as sales and profits fall

5th Sep 17 12:45 pm

Here’s why…

Lego are cutting 1,400 jobs worldwide as the toymaker announced its first drop in revenues for a decade.

The company will now launch an overhaul of its business as revenues fell five per cent to 14.9bn Danish krone (£1.8bn) in the first half of the year.

“We have now pressed the reset button for the entire group,” said Jorgen Vig Knudstorp, Lego’s executive chairman.

“This means we will build a smaller and less complex organisation than we have today, which will simplify our business model in order to reach more children.” 

He added: “We are very sorry to make changes which may interfere with the lives of many of our colleagues. Unfortunately, it is essential for us to make these tough decisions.”

Lego has defied the trend to become the world’s biggest toymaker by sales, beating Hasbro and Mattel, whose sales are around £1.4bn.

The job losses equate to about 8 per cent of its 18,200-work force and the company said the losses be finalized by the end of this year but said there would be redundancy packages and other support for those who lose their jobs.

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