Lego to axe 1,400 jobs after drop in sales in Europe and US
The move will effectively cut 8 per cent of the Danish toymaker's 18,200-strong workforce
LEGO is to axe 1,400 jobs before the end of the year as the company suffered its first drop in revenues in more than 10 years.
The move is part of a company-wide overhaul meant to counter falling sales in the US and Europe.
It will effectively cut 8 per cent of the Danish toymaker's 18,200-strong workforce in a bid to reset what Lego says has become an "increasingly complex organisation".
"We are very sorry to make changes which may interfere with the lives of many of our colleagues," Lego chairman, Jorgen Vig Knudstrop, said.
"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," he added.
The announcement came as Lego's revenues dropped by 5 per cent in the first half of 2017 to 14.9 billion Danish krone (£1.8 billion), while net profit was down 3 per cent at 3.4 billion Danish krone (£543 million).
This represented Lego's first fall in sales since 2004.
Mr Vig Knudstorp added that Lego's decline in established market was disappointing.
He said: "We are disappointed by the decline in revenue in our established markets, and we have taken steps to address this.
"We are working closely with our partners and we are confident that we have the long-term potential of reaching more children in our well-established markets in Europe and the United States."
Last month, Lego also replaced its boss Bali Padda after just eight months.
PSST, SANTA...Argos’ top children’s toys for Christmas 2017 revealed, including TWO Lego sets
In more positive news, the building block company said some of its best-performing toys for the period included Lego City, Lego Friends and Lego Technic, as well as products linked to the hit Lego Batman film.
Meanwhile in the UK, fans are going bonkers for a new Millennium Falcon set - with a staggering 7,541 pieces.
The company released the toy to celebrate the tenth anniversary of the Ultimate Collector's Millennium Falcon, which was the largest at the time with 5,195 pieces.
A £150 Lego set, where kids build robots and control them from a phone or table, also made the Argos' top children's toys list for Christmas 2017.
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