COPENHAGEN (REUTERS) - Toymaker Lego announced plans to lay off 8 per cent of its workforce as it reported a 5 per cent fall in mid-year revenue.
The unlisted maker of colourful plastic bricks reported revenue of 14.9 billion Danish crowns (S$3.22 billion).
That topped My Little Pony producer Hasbro Inc's sales of US$1.82 billion and Barbie doll maker Mattel Inc's US$1.71 billion. "We are disappointed by the decline in revenue in our established markets, and we have taken steps to address this,"Chairman Jorgen Vig Knudstorp said.
Lego said it will cut approximately 1,400 positions, the majority of them before the end of 2017. The company currently employs some 18,200 people. "We are very sorry to make changes which may interfere with the lives of many of our colleagues," Mr Knudstorp said."Unfortunately, it is essential for us to make these tough decisions."
Lego last month removed CEO Bali Padda after just eight months, replacing the Briton with Danish industrialist Niels B. Christiansen.