Mattel goes through another round of layoffs

Mattel announced another round of layoffs targeting dozens of employees, the latest in a flurry of cost-cutting moves made by the company in recent years.

According to a notice sent to state and local officials, the company behind Barbie and Hot Wheels will lay off 65 employees from its El Segundo headquarters, effective on May 22 — about a year after it laid off 120 workers.

Employers are legally required to submit a WARN notice to alert employers, state and local officials at least 60 days before major layoffs. The initial notice was submitted on March 23.

The company let go of 89 workers in January, part of restructuring the company’s global brands team, a Mattel spokesperson told the Los Angeles Business Journal.

Mattel didn’t immediately respond to a request for comment.

The shrinkage follows lackluster economic performance in 2025, which plummted the company’s shares by 25% in February. The company lost close to $1 billion in market value.

The stock market dip came after the company announced weak holiday-season sales, with Barbie products lagging. The doll, a Mattel staple, rose to the spotlight following the 2023 hit movie, “Barbie,” but has since lost momentum.

Mattell made $5.3 billion in net sales in 2025, down 1% from the year before, according to the company’s unaudited financial statements.

Leaders said the company has shifted its focus toward IP-based digital games — a more profitable landscape than toys, which were once integral to Mattel’s success.

The company recently announced it spent around $160 million to acquire full ownership of its mobile game studio Mattel 163, initially a joint venture with the Chinese internet and video game company NetEase. The studio has released four games based on Mattel’s intellectual property since it was established in 2018.

The company announced earlier that digital versions its popular party game, Uno, had launched on Roblox and Fortnite.

Mattel has also set its sights on major movies, recently partnering with Netflix to make toys inspired by the breakout success “KPop Demon Hunters,” which the company expects will boost doll sales.

It also has deals to develop toys for the “Masters of the Universe” franchise, which has a movie releasing in June, and the Teenage Mutant Ninja Turtles franchise that has a new movie slated for next year.

“Success in our toy business will drive success in entertainment, and success in entertainment will drive greater success in toys,” Chief Executive Ynon Kreiz, said in February. “We are looking to fully capitalize on this virtuous cycle.”