EL SEGUNDO, Calif. (CNS) - Mattel, the toy company behind Barbie and Hot Wheels, filed a notice with the state to lay off 120 employees at its El Segundo headquarters in the Los Angeles area.
The layoffs will impact roles across marketing, design and information technology, with some affected employees holding managerial, director and vice president positions, according to the notice.
Under the WARN Act, employers must notify employees, as well as state and local officials, at least 60 days before a mass layoff. Mattel filed its notice Monday, stating that affected workers will begin leaving the company on May 19.
"The actions are part of the company's Optimizing for Profitable Growth cost savings program, begun in 2024," a Mattel spokesperson said in a statement to City News Service. "They are intended to strengthen our organizational structure to drive our growth objectives and optimize our operations."
Toy companies have been preparing for the potential impact of President Trump's tariffs on imports from Canada, Mexico and China, where many of their products are manufactured.
Chief Financial Officer Anthony DiSilvestro said at an investment conference last Thursday that 30% of the cost reductions will target "selling, general, and administrative" expenses.
That same day, CEO Ynon Kreiz told investors that Mattel was in its strongest position in years. Four days later, the company filed its WARN notice.
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