UPDATE: Mattel, the iconic toymaker behind Barbie and Hot Wheels, has just announced it will lay off 89 workers at its El Segundo headquarters as part of a major restructuring effort. 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.
This decision comes as part of a broader strategy to revamp the company’s global brands team aimed at cutting costs and enhancing profitability. The company is targeting $200 million in savings by the end of 2026, a move intensified by concerns over potential tariffs on imports, as indicated by the administration of Donald Trump.
Ancira emphasized the company’s appreciation for its employees, stating,
“We greatly value the contributions of all our employees and do not take any action regarding our workforce lightly.”
However, these layoffs reflect a significant shift in Mattel’s operational focus, particularly within its brand management strategy.
The affected roles primarily involve positions in brand marketing and design, including franchise marketing and video creative development. This marks a continuation of recent workforce reductions; in March 2025, Mattel laid off 120 employees across various departments, including marketing and information technology.
A spokesperson for Mattel noted that these layoffs are aligned with a new brand-centric organizational structure that aims to improve the company’s marketing integration and resource management. This restructuring is part of a larger initiative to drive growth, particularly in the entertainment sector, where Mattel has recently appointed a new leadership team.
As the toy industry faces increasing competition and shifting market dynamics, Mattel’s strategic pivots are crucial for its survival and growth. The company’s new approach is designed to position it favorably for future challenges and opportunities within the global market.
What happens next? Industry analysts will closely monitor how these layoffs impact Mattel’s operations and market position in the coming months. With the toy market increasingly focused on innovation and entertainment, the effectiveness of Mattel’s restructuring will be key to its success.
Stay tuned for further updates on this developing story as Mattel navigates these challenging changes.
