When Lego needs to cut jobs, we all need to pay attention. Does it signal a lack of creativity across the world? Does it signal a financial crisis and parents can’t afford those little extras?
Whatever the source, Lego is cutting 1400 jobs which actually accounts for 8% of its toymaker’s workforce. They also announced a drop in their profits and sales for the first six months of 2017. This is the first time in 13 years that they have had a decline in their revenue.
As Lego chairman Jorgen Vig Knudstorp said, “We have added complexity into the organization which now in turn makes it harder for us to grow further. As a result, we have now pressed the reset button.”
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The new Lego CEO will start in October and they are certainly hoping to return to profit.