Lego the toy maker has announced plans to slash its workforce by 8% after the company saw a 5% decrease in its mid-year revenue.
Despite topping Hasbro Inc. and Mattel Inc. in revenue, the company is still disappointed with the results.
Lego reported revenue of $14.9 billion Danish crowns, or $2.38 billion.
Chairman Jorgen Vig Knudstorp commented, “We are disappointed by the decline in revenue in our established markets, and we have taken steps to address this.”
The company has plans to cut 1,400 jobs with a majority of them being cut before the year even ends. Currently the company has about 18,200 employees.
Knudstorp explained, “We are very sorry to make changes which may interfere with the lives of many of our colleagues. Unfortunately, it is essential for us to make these tough decisions.”
It was in August that the company’s CEO Bali Padda was removed after just eight months on the job and was replaced with Niels B. Christiansen.