Danish toy manufacturer Lego will cut 1,400 jobs following its first turnover drop in more than a decade. The jobs will be cut before the end of the year.
Lower profit
“We are very sorry to make changes which may interfere with the lives of many of our colleagues,” said Jørgen Vig Knudstorp, the chairman of the group, according to The Guardian. “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.” Lego currently employs 18,200 people worldwide.
In the first half of the year, the Danish group’s turnover dropped 5 % to 14.9 billion krona (2 billion euro) and its profit dropped 3 % to 3.4 billion krona (450 million euro). Knudstorp says Lego’s structure is too complex, although it had to expand after the incredibly rapid growth over the past few years. However, this enlarged structure now also makes it harder to continue its growth. “As a result, we have now pressed the reset-button for the entire group”, Knudstorp said.
Bali Padda became Lego’s new CEO on 1 January 2017, succeeding Knudstorp, but he will have to make way for Niels Christiansen on 1 October already.
