Posted on 11/06/2008 4:22:05 PM PST by Diana in Wisconsin
Mattel Inc. said Thursday it is cutting about 1,000 positions worldwide because of the economic downturn that is clouding the holiday outlook for toy makers.
The world's largest toymaker said an undisclosed number of the cuts would be at its Middleton-based American Girl division, which has generally been turning in solid results.
Mattel, which also makes Barbie and Fisher Price products, among others, said the positions amount to 3 percent of its worldwide work force and will reduce its professional and management staff by 8 percent.
The company said the cuts will come from a combination of layoffs, attrition and retirements and will not affect holiday toy production.
Mattel did not break down the numbers by region but said about 170 positions were cut at its El Segundo, Calif. headquarters. Some 70 job cuts are at the company's Fisher Price unit, which has a total staff of 900.
"We had our best year last year...However, we're not immune to the unbelievable, unprecedented rise in the cost of manufacturing, the recessionary trends and the slowing economy," Fisher Price spokeswoman Brenda Andolina said from the unit's headquarters in the Buffalo, N.Y., suburb of East Aurora.
The company said the move was part of an attempt to analyze its cost structure and make changes to boost productivity. The economic slowdown "amplified" the need to address Mattel's structure and streamline its global work force, spokeswoman Lisa Marie Bongiovanni said in a statement.
Toy makers have been battling high costs for commodities such as resin and have had to pass some of the costs on to consumers via higher selling prices.
Last month, Mattel reported fiscal third-quarter profit edged up less than 1 percent to $238.1 million, falling short of analyst expectations. Sales rose 6 percent to $1.95 billion. Expenses for advertising, promotions and other selling and administrative expenses all rose during the quarter.
At that time, CEO Bob Eckert said, "we're experiencing what is likely the worst economic crisis of my generation."
No other major toy companies have announced job cuts recently, but all are facing a difficult environment because of commodity costs and consumers who are reluctant to spend money.
When Pawtucket, R.I.-based Hasbro Inc. -- the maker of the Trivial Pursuit and Clue board games -- reported earnings last month, Chief Financial Officer David Hargreaves said the company was "adjusting our expectations and spending plans accordingly" given the "severity of what is now happening in the global economies."
Major retailers reported October sales Thursday that were the weakest since at least 1969, as the financial crisis and mounting layoffs left consumers too scared to shop. The news further darkened the outlook for the holiday sales season.
Needham & Co. analyst Sean McGowan said Thursday that Mattel's move is not that surprising considering toy makers have been facing higher costs for about two years.
"I don't think it's a sign that things are suddenly worse," he said. "Companies have to do things like this. I'm not reading much into it."
Mattel shares on Thursday closed down 46 cents, or 3.1 percent, to $14.52, amid a broader market tumble.
Oh, wait...that's what my kids ALWAYS had to begin with, LOL!
Barbie & Ken are deeply saddened...
And is there any reason that these "executives" can't place the BLAME squarely where it belongs? On the Democrats?
Yeesh!
WI deserves it, based on what I’ve read. Sorry to any WI freepers, you of course, are excluded.
WI has become another ‘stan.
These guys just do not know how to run a business -— I think Obama is right -— a big corporate tax increase will perk up the economy, just like a big increase in capital gains tax will stimulate the stock market.....
Yes, those socialists have all the business savvy, don’t they???
Yes, it has. But it’s not because of a lack of trying on my part. :)
No, it’s Maia and Kirsten that are saddened. But, they voted Obama, I’m sure!
And it’s only going to get worse here. People think that they can vote themselves instant happiness. Dumba$$es.
You go blue, you get the screw.
I took a chance on a socking big student loan for some career re-training, and it was a bad gamble. Any Milwaukee area business owners who need a hard working conservative with general office, customer service, sales support and now IT skills?
I was shocked to see the county map comparison of WI from 2004 to now--what was mostly red is now almost all blue. What in blazes were people thinking?
Yes, those socialists have all the business savvy, don’t they???
I think you are rushing to judgement here.
Me?
I'm waiting until they take over my 401k, then I'll know for sure that I'm dealing with, "experts."
Let’s see, Wisconsin went for Hussein the Magic Negro, I’m fresh out of crying towels for those folks.
Back in the ‘70’s, the M-16 Stock was made by Mattel.
Really.
You could always relocate...I did 10 years ago...but then, my current location is trying to duplicate WI’s governance as best as possible...economy hasn’t gotten bad enough for them here in the last couple of years, apparently...
Actually, there will be no need for toys in the future, as all stocking will contain coal. We sure ain’t gonna be able to burn it!
I think the Democrats (Marxists)in Congress, along with the vicious MSM, were so filled with HATRED for “Bush” and any Republican that they PURPOSELY refused to listen to any sound ideas for dealing with the lack of oversight of Fannie & Freddie as Elizabeth Dole and McCain asked them to when they presented an oversight bill in order to INSURE that no Republican would EVER hold any sway in the government. Democrats insisted that there was “no problem” with Fannie & Freddie in 2006 and voted the bill down. Like a suicidal brat’s temper tantrum.
When the terrorists lay a bomb in the middle of their little vipers’ nests in NYC, they will scream “Why are they bombing us - THEY LOVE US NOW!!” Then they will be for a very brief moment reminded that President Bush kept them safe for seven years after the debauched, greedy Clinton set us up for 9/11 by not dealing with the World Trade Center attack properly the first time it was hit.
Watchman on the Wall
P.S. What ever happened to the “Ice Age” that was predicted by all those in the know, scientists and experts, twenty-five years ago? We should all be popsicles by now.
A yes, the big-@ss box! It was always an unexpected surprise when one of our neighbors got a new appliance and turned the box over to us. Instant fort, submarine, or space ship!
I THOUGHT Barbie was looking a little haggard of late!! Now I know why!
“What in blazes were people thinking?”
Free pie for all? :) F-ing morons.
If it were possible, we would, but for many reasons we are stuck here. I told my kids to leave the state when they get a chance and we will follow if it’s ever possible.
I remember the SUMMER we got a new fridge. We took the big box apart and made sleds from it and went “sledding” down the big grass hill in the back, LOL!
I know! I toted an M-16 around with me from 1977 until 1997. :)
I hope and pray it hits the blue states first and hardest! Except for our blue state freepers! May the rest of the gullible Obamaniacs go down the economic craphole
Just wait for the Milwaukee city and county jobs to start going away.
The city of Milwaukee just passed paid sick leave for full and part time workers. Businesses will be fleeing to get out of the city if they can.
The county of Milwaukee had 2 of its 18 districts (unfortunately the bulk of votes here were for it) vote for a 1% increase in our local sales tax.
We are going to be f@cked hard and long.
Top it all off that the Milwaukee city school board just passed a 14% tax increase, and Milwaukee just became the worst place to do business in the state.
If I burn my little 401K, I am planning to learn something along the lines of electrician or welder or auto mech.
I bow to you!!!!!!!!!!!!!!!
(I only did three little years.)
To be honest, I hope many 0bama-voting line workers in states like WI,OH, PA etc. lose their jobs. It would be a just punishment for voting for a candidate who has declared war on capitalism.
But they were three IMPORTANT years. :)
It’s starting. Mattel is the first lay-off. Many others will follow.
They run ‘The People’s Republik of Madistan’ the exact same way.
When the first HINT of ANY Government job layoffs or even tiny benefit cuts, or a paid holiday loss start, you’ll be able to hear the HOWLING all the way over by your house, LOL!
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