Before I get into the numbers, I want to say to those effected by the layoffs that I know I am writing about your misfortune, and I I know this is a very hard time for you. I wish you the very best and trust that you will be employed again in the not too distant future, hopefully with a toy company.
The Covid years were good for the toy industry. The aftermath, however, has not been pretty. Weak sales and heavy inventories in 2022 have forced three publicly held toy companies to lay off parts of their workforce.
MATTEL LAYS OFF 93 WORKERS IN EL SEGUNDO AND AN UNKNOWN AMOUNT ELSEWHERE
On February 27, 2023, Mattel announced it was conducting layoffs. A spokesperson for the company said it was due to “challenges in the macroeconomic environment.”
Multiple news outlets reported that 93 employees in the El Segundo headquarters would be laid off. That was the only hard number given. We simply do not know how many workers will be laid off in total.
We can, however, do some estimating. According to a Los Angeles Times article by Samantha Masunaga, “Mattel lays off workers, including 93 employees in El Segundo.” Mattel employs 1545 people in El Segundo. Ninety-three employees would represent 6% of the El Segundo workforce.If Mattel were to lay off 6% of its total workforce of 33,900*, that wold would come to 2034 employees.
Hasbro lays off 15% of it workforce
Hasbro announced on February 7, 2023, that it was laying off 15% of its workforce, roughly 1,000 people.
Why the layoffs? According to a Hollywood Reporter article by Etan Vlessing, “Hasbro Posts $129M Loss Amid Layoffs As It Looks for An Entertainment One Buyer,“
On Thursday, Hasbro posted a loss of $129 million, against a year-earlier profit of $82.2 million, on revenues down 17 percent to $1.67 billion, which missed on a sales estimate of $1.72 billion, according to FactSet.
“Hasbro Posts $129M Loss Amid Layoffs As It Looks for An Entertainment One Buyer,”Etan Vlessing, Hollywood Reporter, february 16, 2023
Funko LAYS OFF 10% of ITS workforce
Why is Funko laying off personnel? The answer may be in this Kotaku headline: “Over $30 Million Worth Of Funkos Are Headed To The Landfill.” They had so much inventory that it cost more to keep than destroy them. Weak fourth-quarter sales, plus too much inventory, is not what you want to have at the end of the year.
Of course, the question is: “How many people does Funko employ? Zippia, which updated its number on February 23, 2023, provides us with a figure of 500 employees.
So, how many layoffs will there be, based on a 10% figure and the employee numbers given by Zippia; the actual number will be approximately fifty.
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