As the U.S. now deals with civil unrest and massive protests in response to the killing of George Floyd, the COVID-19 pandemic — and its casualties — continues.
One major fear for businesses has been the potential for temporary furloughs due to coronavirus-related closures to become permanent layoffs. That’s just what’s happened for 25% of the workforce at Washington-based Funko.
In its latest Form 8-K filing with the U.S. Securities and Exchange Commission (SEC), the “purveyors of pop culture” collectibles, toys, apparel, and accessories revealed that it expects to incur approximately $1 million in charges related to certain termination benefits.
The Toy Book has confirmed that some layoffs have already taken place, and Funko says that the majority of its workforce reduction will occur by the end of the second quarter with the remainder of cuts to occur by the end of the third quarter.
Funko, which has been diversifying into new product lines such as Marvel Battleworld: Mystery of the Thanostones and new divisions such as Funko Games, has largely been tethered to live events for sales that have vaporized this year with the cancelation of Comic-Con International: San Diego (SDCC) and others. On its latest earnings call, CEO Brian Mariotti cautioned that the biggest challenges of 2020 would emerge in the second quarter.