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Thu Jul 26, 2018, 06:10 PM

A Toys R Us death blow: Mattel to lay off 2,200 workers

Mattel, the maker of Barbie and Hot Wheels, said Wednesday it is laying off 2,200 workers — or 22 percent of its corporate workforce — as sales slide following the liquidation of Toys R Us.

The toy giant, based in El Segundo, Calif., said sales fell for the fourth consecutive quarter as it struggled to make up for lost business from the closure of nearly 800 Toys R Us stores across the country. Revenue dropped 14 percent to $841 million in the most recent quarter, while losses continued to mount.

“There has been a big discrepancy between our financial performance over the last few years and where the company should be,” chief executive Ynon Kreiz said in a statement.

Shares of Mattel fell as much as 9 percent in after-hours trading following the announcement.

https://www.washingtonpost.com/business/2018/07/25/toys-r-us-death-blow-mattel-lay-off-workers/?noredirect=on&utm_term=.3ce1c56efee0

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Reply A Toys R Us death blow: Mattel to lay off 2,200 workers (Original post)
Sherman A1 Jul 2018 OP
Renew Deal Jul 2018 #1
Sherman A1 Jul 2018 #4
kimbutgar Jul 2018 #2
Sherman A1 Jul 2018 #3
poetshepherd Jul 2018 #5
Omaha Steve Jul 2018 #6
leftstreet Jul 2018 #9
JHB Jul 2018 #7
Generic Brad Jul 2018 #8
Sherman A1 Jul 2018 #10
Tipperary Jul 2018 #11

Response to Sherman A1 (Original post)

Thu Jul 26, 2018, 06:15 PM

1. That's terrible

And very sad. I wonder if losing Toys R Us will change how kids play.

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Response to Renew Deal (Reply #1)

Thu Jul 26, 2018, 07:25 PM

4. It will b hard to say if it will or will not.

to a degree some of that has already happened with the changes to electronic devices. This will be a tough shakeout for the toy and game companies.

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Response to Sherman A1 (Original post)

Thu Jul 26, 2018, 06:23 PM

2. My Grandmother used to work for Mattel in the 60's

When the factory was in Hawthorne, Ca. She gave me a Barbie once that had two faces. I think I still have it somewhere under my house with my other barbies.

This is so sad. I also worked my only retail job at Toys R us during Christmas once. Terrible job, the kids were ok but the parents were rude if you couldn’t find the hot toy they waited until the last minute to buy.

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Response to kimbutgar (Reply #2)

Thu Jul 26, 2018, 07:23 PM

3. Retail is hard work and Retail workers are often disrespected by the customers

a situation that has gotten much worse over time. Holidays are especially "entertaining" in their own special way. Did it for over 4 decades and happy to be done with it.

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Response to Sherman A1 (Original post)

Thu Jul 26, 2018, 07:35 PM

5. Lost opportunity for Sears

 

Sears should diversify, add Toys-R-Us dept to its stores. Partner w/ Amazon on store pick ups. Above all, survive.

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Response to Sherman A1 (Original post)

Thu Jul 26, 2018, 08:29 PM

6. How many production workers do they have in the USA?


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Response to Omaha Steve (Reply #6)

Thu Jul 26, 2018, 08:33 PM

9. Not many

The toymaker offered few details on the timing or locations of the layoffs but said fewer than half would be in the United States. The cuts are part of a two-year, $650 million plan to lower costs, the company said, adding that it also plans to sell two manufacturing facilities in Mexico. Earlier this year, Mattel announced plans to close its New York office, where it had roughly 100 employees.

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Response to Sherman A1 (Original post)

Thu Jul 26, 2018, 08:30 PM

7. Thanks Mitt.

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Response to Sherman A1 (Original post)

Thu Jul 26, 2018, 08:32 PM

8. Kids no longer play with toys?

Or could it be that there is a less viable way to get toys to market due to the closure of Toys R Us?

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Response to Generic Brad (Reply #8)

Fri Jul 27, 2018, 04:24 AM

10. From my understanding

Toys R Us being a major Retailer in this category, was also a major conduit for toy sales. The loss of the shelf space and impulse sales will hurt such manufacturers as Mattel, Hasbro and many others. Even with Target expanding it's board game category over the last few years, this will likely not make up for Hasbro numbers from what I read in a prior article months ago. The loss of any player in the distribution network hurts everyone else in that network.

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Response to Generic Brad (Reply #8)

Fri Jul 27, 2018, 04:27 AM

11. They all have iPads now.

 

I have noticed for years now that on Christmas morning, when all the kids used to be outside on new skates, bikes, skateboards etc., I never see kids outside. I think it is very sad.

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