For Lego, it’s an ideal opportunity to break down the blocks and begin once more.
Subsequent to working up sales strongly since a close bankruptcy in 2004 through new ventures like movies and new toy lines, the company appears to have hit a pinnacle. Its sales are currently falling without precedent for a long time and it says it needs to disentangle its operations.
That implies cutting 1,400 occupations, or eight percent of its worldwide workforce.
The privately held Danish firm said Tuesday that it “now prepares to reset the company,” with another CEO about of assume control in October.
“We will build a smaller and less complex organization than we have today, which will simplify our business model in order to reach more children,” said Chairman Joergen Vig Knudstorp.
Income dropped five percent in the initial six months of the year, to 14.9 billion kroner ($2.4 billion US), essentially because of weaker demands in key markets like the U.S. and, Europe, where sales had risen firmly for quite a long time. Profits slipped 3 percent to 3.4 billion kroner ($544 million US).
Exemplary toy lines, for example, Lego City, did well, as did items related with The Lego Batman Movie.
Be that as it may, income in different lines did not work out quite as well, with investments in some new items not yielding the coveted benefits.
Lego, which at present has 18,200 workers, does not discharge quarterly figures.