URGENT UPDATE: Toy giant Mattel is set to lay off 89 workers at its El Segundo headquarters, effective January 12, 2026. This restructuring is part of a broader strategy to streamline its global brands team, as confirmed in a letter from Karen Ancira, Mattel’s executive vice president and chief people officer.
The decision comes as Mattel aims to save $200 million by the end of 2026, a move influenced by rising costs due to potential tariffs initiated by Donald Trump. Ancira emphasized the company’s appreciation for its employees, stating, “We greatly value the contributions of all our employees and do not take any action regarding our workforce lightly.”
This latest round of layoffs follows a previous reduction of 120 jobs in March, affecting various roles including marketing and IT. The impacted positions in this new wave include brand marketing, product design, and senior management roles within the global brands team.
In an effort to enhance efficiency, Mattel is restructuring its brand organization to adopt a more integrated marketing approach. A spokesperson noted that the new brand-centric structure is designed to leverage resources better and drive growth in the company’s entertainment sector, particularly for iconic brands like Barbie and Hot Wheels.
The restructuring aligns with Mattel’s ongoing efforts to adapt to changing market dynamics and consumer preferences. The company had previously announced a leadership shift to accelerate growth, including the appointment of a new global head for its doll and vehicle divisions.
As Mattel navigates these changes, the impact on its workforce and brand strategy will be closely watched by industry analysts and consumers alike. This development marks a significant moment for the toymaker, as it seeks to redefine its operational model in a competitive market.
Stay tuned for more updates on this developing story as Mattel implements these critical changes.
