UPDATE: Mattel, the iconic toymaker behind Barbie and Hot Wheels, has confirmed it will lay off 89 workers at its El Segundo headquarters as part of a critical restructuring of its global brands team. The layoffs are set to begin on January 12, 2026, according to a letter from Karen Ancira, Mattel’s executive vice president and chief people officer, filed with the state’s Employment Development Department.
“This decision was not made lightly, as we greatly value the contributions of all our employees,” Ancira stated in the letter. The layoffs are part of a broader cost-cutting initiative aimed at achieving $200 million in savings by the end of 2026, amid ongoing challenges including potential tariffs on global imports.
The restructuring follows a series of leadership changes within Mattel’s brand organization, as the company shifts towards a more integrated marketing approach. A spokesperson for Mattel clarified that the affected positions primarily involve roles in brand marketing, design, and senior management.
This announcement comes just months after the company laid off 120 workers in March, affecting various roles including marketing, design, and IT. This latest round of layoffs targets key positions such as franchise marketing, product design, and even senior managers and vice presidents, signaling a significant shift in the company’s operational strategy.
In September, Mattel initiated a leadership team overhaul to bolster growth in its entertainment sector. New roles were created for the global head of dolls, global head of vehicles, and executive vice president and chief global brand officer, signaling a pivot towards enhancing brand management and driving future growth.
As Mattel braces for these changes, the impact on employees and their families is profound. Many workers are left searching for new opportunities, highlighting the emotional toll of corporate restructuring during uncertain economic times.
Moving forward, industry observers will be closely watching how these changes affect Mattel’s market position and profitability. The company aims to leverage its newly formed brand-centric organizational structure to navigate the competitive landscape and enhance its offerings.
Stay tuned for further updates on this developing story as more details emerge.
