Mattel Plans 65-Worker Layoff May 22 After $5.3B Sales Drop 1%
Mattel will lay off 65 employees at its El Segundo headquarters effective May 22, following 120 cuts last year and 89 in January as part of ongoing cost reductions. The toymaker reported $5.3 billion in 2025 net sales (down 1%), saw shares plunge 25% and acquired Mattel 163 for $160 million.
1. Cost-Cutting Layoffs
The company filed a WARN notice on March 23 to cut 65 jobs at its El Segundo headquarters effective May 22, adding to 89 layoffs in January and 120 cuts a year earlier as it seeks to reduce expenses.
2. Weakened 2025 Financials
Mattel reported $5.3 billion in net sales for 2025, down 1% year-on-year, saw its shares fall 25% in February and lost close to $1 billion in market capitalization after underperforming holiday sales.
3. Pivot to Digital and IP
The toymaker invested $160 million to acquire full ownership of mobile studio Mattel 163, has launched four IP-based games since 2018 and rolled out digital Uno on Roblox and Fortnite, while securing toy partnerships for upcoming film franchises.