lego

Lego To Shed 8 Percent Jobs

Come this year-end and there will be cut of 1,400 jobs at Lego citing first drop in sales in over a decade.

The 85-year-old Danish toymaker is currently facing weaker demand in United States and several parts of the European countries.

Currently the company has 18,200 workforce globally and the cut is just 8 percent. It is a required step as for past five years supporting global growth has become complex.

Lego chairman Jorgen Vig Knudstorp said the changes may interfere lives of several colleagues, but unfortunately the step is essential.

Based in Billund, Denmark, the organization is controlled by the founding Kristensen family and runs five main office hubs in Billund, Enfield, London, Singapore and Shanghai.

Lego has manufacturing facilities in Denmark, China, Czech Republic, Hungary and Mexico. In United Kingdom it has about 900 employees.

In the first half of this year revenue of Lego slashed down by 6 percent to 14.9 billion Danish Krone and the net profit saw a southward turn by 3 percent at 3.4 billion Danish Krone.

The company said even though the first half of 2017 saw a double-digit growth in China but revenue declined in the established markets and so to address the shortfall they are taking serious step of job cut.

Knudstorp said, “We are working closely with our partners and we are confident that we have the long-term potential of reaching more children.”

Knudstorp was CEO of the company in most of the period. He said the business is currently suffering from complex structure.

Comments