1400 Employees will be Laid Off - LEGO Group Revenue Declines by 5%

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1400 Employees will be Laid Off - LEGO Group Revenue Declines by 5%

Post by Toys N Bricks » Wed Sep 06, 2017 7:28 pm

The LEGO Group has announced that its revenue has declined by 5% for the first half of 2017. Future plans from LEGO include a smaller and simpler organization. LEGO is also planning to reducing its total global workforce by 8% by the end of 2017 which would eliminate about 1400 positions. Currently, there are about 18,200 employees.



2017 First Half Financial Highlights (compared to first half 2016)

Revenue down 5 percent to DKK 14.9 billion compared with DKK 15.7 billion
Operating profit down 6 percent to DKK 4.4 billion compared with DKK 4.7 billion
Net profit down 3 percent at DKK 3.4 billion compared with DKK 3.5 billion
Cash flow from operating activities was DKK 4.6 billion compared with DKK 3.9 billion

Plan for smaller and simpler organisation

Knudstorp said: “In the process, we have added complexity into the organisation which now in turn makes it harder for us to grow further. As a result, we have now pressed the reset-button for the entire Group. This means we will build a smaller and less complex organisation than we have today, which will simplify our business model in order to reach more children. It will also impact our costs. Finally, in some markets the reset entails addressing a clean-up of inventories across the entire value chain. The work is well under way.”

As a consequence of the plans, the LEGO Group believes it would need to reduce its total global workforce by around eight per cent. This would impact approximately 1,400 positions, the majority before the end of 2017.  Currently the LEGO Group employs approximately 18,200 people.

*The full press release is available here.






Article Link: http://toysnbricks.com/1400-employees-w ... ines-by-5/
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Re: 1400 Employees will be Laid Off - LEGO Group Revenue Dec

Post by rollingbrick » Fri Sep 08, 2017 2:24 am

Lego Panics! A 5% decrease would be likely after the growth it has had. Movies, video games, and new lines can't all be profitable because it won't all sell like crazy.

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Re: 1400 Employees will be Laid Off - LEGO Group Revenue Dec

Post by slacker » Fri Sep 08, 2017 7:54 am

It's greed. No reason to layoff people if it's still profitable.

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Re: 1400 Employees will be Laid Off - LEGO Group Revenue Dec

Post by Richard J. » Fri Sep 08, 2017 8:18 pm

I think they need to do more to convince people their product is worth buying for kids and try to reduce the cost of their sets. I love Lego, always have, but it's gotten a lot more expensive than it used to be.

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Re: 1400 Employees will be Laid Off - LEGO Group Revenue Dec

Post by anakinisvader » Sat Sep 09, 2017 7:51 am

LEGO "investors" are starting to drop like flies. That had a lot to do with the sales. Investors were buying from other investors and wiping out stores. Now even clearance seems to be sitting around longer until it is discounted deeper. I'm sure LEGO started expanding when the going was good. Now its not so good and they need to make cut backs. Its all cyclical.
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Re: 1400 Employees will be Laid Off - LEGO Group Revenue Dec

Post by Brick & Blue » Sun Sep 10, 2017 2:57 am

Richard J. wrote:I think they need to do more to convince people their product is worth buying for kids and try to reduce the cost of their sets. I love Lego, always have, but it's gotten a lot more expensive than it used to be.
It's not just price, it's design. There are several sets a year that are $50-$60 a year and are literally just a 2D wall and some minifigures. LEGO lacks the creativity. Best themes of 2017 for mere Friends and NinjaGo Movie because they are different, we haven't gotten 'Ski Resort LEGO before and the NinjaGo Movie sets don't include a single motorcycle and are funned different.

So what does NinjaGo have coming out in 2018? More motorcycles, more recycling of crap from years past. It's a theme that was planned with Skellies and Snakes and now it's like City with just redoing the same thing all the time.

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Re: 1400 Employees will be Laid Off - LEGO Group Revenue Dec

Post by NIGELTTF » Tue Sep 12, 2017 7:52 am

Yeah Police Station, Firehouse, Heist/Prison, Airport, Police/Fire Boat, Truck, or Helicopter, Gas Station, Construction set, and Vacation Vehicle. Again and Again and Again. However, at least there is Jungle Expedition, The Fishing Boat and the Pizza Van. Those are somewhat fresh. However, School? Hospital? Shop? Barber? Hotel? Supermarket? Warehouse? Theater? Courthouse? Post Office? Not counting modulars that are going to not be within the budget of most toy buyers, when has there been any of those?

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Re: 1400 Employees will be Laid Off - LEGO Group Revenue Dec

Post by Richard J. » Tue Sep 12, 2017 6:22 pm

anakinisvader wrote:LEGO "investors" are starting to drop like flies.
I hope you're right about this. It really drove me crazy when I finally had enough money to get a set I'd had to save up some for and then, BANG! Every. Single. One. GONE! Sometimes OVERNIGHT!

Took me a little while to notice there was a pattern to it. Apparently some "investor" was periodically going around to all the stores in my part of Georgia and grabbing every one of certain sets.

It stopped a little while back but it still drives me nuts when I'm trying to find a set and it's nowhere to be found in stores but online there's thousands on the secondary market at high markups. Geez, people, follow the anime otaku model if you MUST buy for investment: Buy one to use, one to display, and one to store for later.

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Re: 1400 Employees will be Laid Off - LEGO Group Revenue Dec

Post by intromission » Thu Sep 14, 2017 6:18 am

Good, maybe we'll finally see some good sales this holiday season.

In all seriousness though, my heart goes out to those affected by the layoff.

Lego has been getting progressively more expensive for years now, it was only a matter of time before the market would check their growth.

I love the Lego group and pretty much everything about Lego, but they should have seen this coming.

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