Shares of Mattel were deep in the red on Wednesday after the company revealed that it would be slashing 2,200 jobs as part of a cost savings plan. The company also reported dismal quarterly results that missed in sales.
For the quarter, net loss was $240.9 million, or 70 cents a share. In the year ago period the loss was 16 cents a share. The company lost 56 cents a share, excluding items, which was worse than the 30 cent loss analysts were waiting for. Net sales at $840.7 million was also behind the $851.8 million expected.
The toy maker has been hit hard ever since Toys R Us declared bankruptcy and liquidated its stores.
According to Mattel, the job cuts represent a 22% reduction of its global non-manufacturing workforce and is part of a cost savings plan the company revealed back in October.
Mattel has a goal to eliminate $650 million in costs over two years and one third of that chunk is expected to be achieved this year. It was also earlier this year that Mattel said it would be closing its New York office.
“We … had a challenging second quarter driven primarily by the Toys “R” Us liquidation,” Mattel’s new CEO Ynon Kreiz commented.
Disclaimer: We have no position in Mattel, Inc. (NASDAQ: MAT) and have not been compensated for this article.