The ongoing restructuring within Funko will result in a workforce reduction involving approximately 180-200 employees.
In a filing with the SEC this afternoon, the Washington-based company stated that it implemented the layoffs yesterday which represents 12-13% of the company’s workforce.
Immediate charges in the $2.4-2.8 million range are expected to be felt in the third quarter due to one-time termination charges and severance obligations.
Funko believes that it will save $20-22 million in annualized run rate cash savings, excluding new hires in the future.
The past year has been a tumultuous one for the pop culture lifestyle company behind Pop! Vinyl Figures, Loungefly, and Funko Games.
Earlier this month, CEO Brian Mariotti was placed on a leave of absence and stepped down from his post as CEO, less than nine months after stepping back into that role amid a leadership shuffle last fall. Still, he made an appearance on stage at the Funko Fundays Summer Camp event at Comic-Con International: San Diego last week.
In May, the company warned that it was facing “right-sizing” as it continued to address the organizational challenges that have caused a near-catastrophic imbalance between rising sales and continued consumer demand (particularly in the digital channels) running in tandem with poor inventory management and a slowdown at mass retail.
Last year, Funko accepted a $263 million strategic investment from The Chernin Group (TCG) and an investor consortium, including Disney CEO Robert A. Iger, Rich Paul (CEO and founder of Klutch Sports Group, Head of Sports at United Talent Agency), and eBay. The move gave TCG a 25% stake in the company.
Funko is expected to report its second quarter earnings on August 3.
