UNITED NEWS INTERNATIONAL — The toy manufacturer for Barbie has announced it will be cutting thousands of jobs, following a slump in sales.
In a statement on July 25, Mattel said as part of its plan to slash its costs by $650 million, more than 2200 people worldwide, will lose their jobs.
The company’s chief executive Ynon Kreiz, said the company is also reviewing its factories and deciding how much of its products it will continue to produce itself.
Kriez added Mattel is looking for more ways to sell its toys online.
Since Toys R US filed for bankruptcy last year, a number of toy companies including Mattel have been struggling.
Following Wednesday’s announcement, Mattel’s shares plummeted more than 8 percent and its financial results were worse than predicted.
Board game company Hasbro, however, reported better-than-predicted financial results.