CALIFORNIA – Mattel notified the California Employment Development Department (EDD) that it would be laying off 120 employees from its corporate headquarters effective May 19, 2025.
As of December 2024, Mattel employs approximately 34,000 people worldwide.
The company said it already reduced their non-manufacturing workforce by over 35%, reduced product lines by over 35% and cut the number of factories it owns by five, with plans to close a sixth this year.
The El Segundo-based toymaker behind Barbie, Hot Wheels, and more said these actions will save $200 million by 2026.
‘The toy industry remains a growth industry’
The toy industry finished the year slightly down in 2024.
Speaking at the UBS 2025 Global Consumer and Retail Conference, Mattel CEO Ynon Kreiz stated that despite some recent exceptions, the toy industry remains a growth industry.
“…toys have been growing even with the advent of digital experiences, screen time, and other changes in the economy over the last 25 years. So we believe the toy industry will return to growth over time and that, overall, it’s in a healthy place,” said Kreiz.
He also said Mattel has evolved to become an intellectual property company.
“The Barbie movie is an obvious example. That is one that is out there, and everybody saw that success and understands what it represents and the potential of our product to become great movies,” said Kreiz.
Diversifying manufacturing footprint to deal with tariffs
Mattel also discussed navigating tariffs during the conversation.
Effective March 4, 2025, the U.S. imposed a 25% tariff on all goods imported from Canada and Mexico. The Trump Administration also imposed a 20% tariff on imports from China (and Hong Kong).
Mattel chief financial officer Anthony DiSilvestro said the company is dealing with tariffs by diversifying its manufacturing footprint.
“… in 2025, less than 40% of our total production is expected to come from China, and that compares to an industry average of around 80%…And with respect to Canada and Mexico, we source nothing from Canada today and less than 10% of our product from Mexico,” said DiSilvestro.
According to the Peterson Institute for International Economics tariffs could cost the average U.S. household $1,200 annually.
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