Mattel to cut 2,200 jobs amid losses

Shares of toymaker Mattel tumbled in after-hours trading, after announcing the company would cut 2,200 jobs, sell factories and second-quarter earnings disappointed.

The job cuts amount to 22 percent of the global non-manufacturing workforce, mainly in back-office and support functions.

Mattel also said it would sell factories in Mexico as part of a cost-saving program.

The company’s second-quarter earnings disappointed as it didn’t have a blockbuster movie tie-in, which sent toys from franchises down 23 percent.

Results were also hurt by the liquidation of a large customer, Toys ‘R’ Us.

“We are in a turnaround and as expected, had a challenging second quarter driven primarily by the Toys “R” Us liquidation,” said Ynon Kreiz, Chairman and CEO of Mattel. “At the same time, we saw continued strong performance by Barbie and Hot Wheels, and we made substantial progress on our Structural Simplification program to restore profitability and improve productivity in the near-term.”

Kreiz took over from Margo Georgiadis in April. Shareholders also elected a new board of directors in May.

The company reported a loss of $240.9 million for the quarter.

Overall sales fell 13.7 percent to $840.7 million, which fell short of the $851.8 million estimate.

Shares fell more than 8 percent.