WASHINGTON (dpa-AFX) - Lego plans to cut 1,400 jobs before the end of the year after the company reported its first drop in sales in more than a decade.
The toymaker reported a 5 percent decline in revenues hurt largely by poor demand in established markets such as the US and parts of Europe. Revenue in the first half of 2017 dropped to 14.9 billion Danish krone, while net profit was down 3% at 3.4 billion Danish krone.
According to the company, the business affected from an overly complex structure that resulted from rapid growth over the past five years.
Lego's job cuts will affect 8 percent of its 18,200 global workforce.
'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. '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.'
Billund, Denmakr-based Lego is controlled by the founding Kristensen family that has 75% stake in the company.
Copyright RTT News/dpa-AFX