Playmobil moves production out of home market in Germany

Playmobil closes its factory in Dietenhofen, Bavaria. The German toy brand is moving production of its well-known figures to lower-cost locations in the Czech Republic and Malta. Rising costs and declining popularity are spelling the end for the 350 employees.

Revenue under pressure

Owner Horst Brandstätter Group has seen revenue drop sharply in recent years. The company still generated 760 million euros in the 2020/2021 fiscal year, but by 2024/2025, revenue had fallen to 409 million euros. In May, the company reported that “the decline was slowing and an improvement was on the horizon.” One of those recovery measures now appears to be the closure of the historic factory, where Playmobil first entered the market in 1974.