Lego axes 1,400 jobs in 'reset' amid falling sales

1 London

London News & Search

1 News - 1 eMovies - 1 eMusic - 1 eBooks - 1 Search

Lego is set to axe 1,400 jobs in a company-wide “reset” after figures showed falling sales in Europe and the US.

The Danish toymaker, known for its iconic bricks, employs 900 people in the UK. It will be cutting 8 per cent of its 18,200-strong workforce.

Lego will make most of the redundancies before the end of the year.

The company said it was part of a “reset” for the group.

Lego Group chairman Jorgen Vig Knudstorp said: “We are very sorry to make changes which may interfere with the lives of many of our colleagues.

The success of the 2017 Lego Batman Movie couldn’t save falling profits (LEGO)

“Our colleagues put so much passion into their work every day and we are deeply grateful for that. Unfortunately, it is essential for us to make these tough decisions.”

Staff will be offered redundancy packages and support as they move into new jobs outside Lego, the company said.

The toymaker made the announcement alongside its half-year results, which revealed a 5 per cent drop in revenue to £1.8bn.

Though Lego is booming in China, making a double-digit sales jump in the Chinese market, this could not compensate declining sales in the US and Europe. This is despite launching the world’s largest Lego store Leicester Square last year. 

The huge success of last year’s Lego Batman Movie also failed to save falling profits, even though it made a whopping £240m at the box office. 

“We are disappointed by the decline in revenue in our established markets, and we have taken steps to address this,” Mr Vig Knudstorp said. 

“We are working closely with our partners and we are confident that we have the long-term potential of reaching more children in our well-established markets in Europe and the United States.

“We also see strong growth opportunities in growing markets such as China.”

Lego’s most popular toys include Lego City, Lego Friends and Lego Batman. 


1 London

London News & Search

1 News - 1 eMovies - 1 eMusic - 1 eBooks - 1 Search


Facebooktwitterredditpinterestlinkedinmail

Facebooktwitterlinkedinrssyoutube

Leave a Reply