Mattel goes through another round of layoffs

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Mattel announced another round of layoffs targeting dozens of employees, the latest in a flurry of cost-cutting moves made by the company in recent years.According to a notice sent to state and local officials, the company behind Barbie and Hot Wheels will lay off 65 employees from its El Segundo headquarters, effective on May 22 — about a year after it laid off 120 workers.

The company is reducing and restructuring roles across the company to optimize operations and realign the company toward a new brand-centric operating model, a Mattel spokesperson told The Times.“These changes are designed to advance the company’s growth objectives and strengthen our competitive position,” the Mattel spokesperson said.Employers are legally required to submit a WARN notice to alert employers, state and local officials at least 60 days before major layoffs.

The initial notice was submitted on March 23.The company let go of 89 workers in January, part of restructuring the company’s global brands team, a Mattel spokesperson told the Los Angeles Business Journal.

The shrinkage follows lackluster economic performance in 2025, which plummeted the company’s shares by 25% in February.The company lost close to $1 billion in market value.

The stock market dip came after the company announced weak holiday season sales, with Barbie products lagging.The doll, a Mattel staple, rose to the spotlight following the 2023 hit movie “Barbie,” but has since lost momentum.

Mattell made $5.3 billion in net sales in 2025, down 1% from the year before, according to the company’s unaudited financial statements.Leaders said the company has shifted its focus toward IP-based digital games — a more profitable landscape than toys, which were once integral to Mattel’s success.

The company recently announced it spent around $160 million to acquire full ownership of its mobile game studio Mattel 163...