LEGO said it would lay off 8 percent of its staff and revamp its business after reporting fiscal results for the first half ending June 30, 2017. Revenue for the period declined 5 percent, compared with the first half of 2016. The layoffs would impact approximately 1,400 positions, the majority before the end of 2017. Currently the LEGO Group employs approximately 18,200 people.
Performance across market regions was mixed. In established markets such as the U.S. and in parts of Europe revenue declined, while in some growing markets, such as China, revenue grew by double digits.
Operating profit was down 6 percent compared with the same period in 2016. This was due to lower revenue and increased costs associated with investments in production capacity and organizational capabilities made to support higher expectations of revenue that failed to materialize.
During the first half of the year, some of the best-performing themes for the company were homegrown classics such as LEGO City, LEGO Friends, LEGO Duplo, and LEGO Technic, while the LEGO Batman movie products also saw a great response from consumers, according to the company.
