UPDATE: In a shocking move, toy giant Mattel is set to lay off 89 workers at its El Segundo headquarters, starting on January 12, 2026. This decision, part of a broader restructuring of its global brands team, signals a significant shift in the company’s operational strategy.
The announcement was confirmed in a letter from Karen Ancira, Mattel’s executive vice president and chief people officer, filed with the state’s Employment Development Department on November 13, 2025. Ancira emphasized the company’s deep appreciation for its employees, stating, “We greatly value the contributions of all our employees and do not take any action regarding our workforce lightly.”
These layoffs are a continuation of Mattel’s cost-cutting measures initiated last year, aiming to achieve $200 million in savings by the end of 2026. The restructuring comes as Mattel prepares for potential impacts from President Donald Trump’s tariffs on global imports, highlighting the urgent need for financial optimization.
Affected roles primarily involve positions within brand marketing and design, including franchise marketing and product design. The latest round of layoffs follows a previous reduction in March, where 120 workers were let go across various departments, including marketing and IT.
A spokesperson for Mattel revealed that the layoffs are part of a strategic shift towards a “new brand-centric organizational structure.” This initiative aims to better integrate marketing efforts and enhance brand management, positioning Mattel for future growth. The company recently announced a new leadership team focused on accelerating growth in its entertainment sector, creating key positions for brands like Barbie and Hot Wheels.
As the toy industry faces increasing challenges, these layoffs underscore the volatile landscape and the urgent need for companies like Mattel to adapt quickly. The impact of this decision will be felt not only by the affected employees but by the broader community as well.
Looking ahead, industry experts are closely monitoring how these changes will affect Mattel’s market position and overall profitability. The company’s commitment to restructuring amid economic pressures raises questions about the future strategies that will be implemented to navigate this evolving market.
Stay tuned for more updates on this developing story as Mattel’s restructuring progresses.
