Lego cuts 1400 jobs as its sales hit a brick wall

Lego cuts 1400 jobs as its sales hit a brick wall”

Lego Group chairman Jorgen Vig Knudstorp said: "We are very sorry to make changes which may interfere with the lives of many of our colleagues".

Over the past dozen years, Lego A/S has snapped together sales growth with construction sets ranging from Elsa's sparkling ice castle to the "Star Wars" Imperial Assault Hovertank - as if game consoles and smartphones had never invaded the playroom.

Revenue in the first half fell 5% to 14.9bn Danish krone as weaker demand in the group's established markets of the U.S. and parts of Europe offset double-digit percentage growth in China.

A Lego spokesperson declined to comment on where the jobs would be cut, but the company said a majority of the 1,400 positions will be gone before the end of the year.

One of the great turnaround stories of the past decade has come unravelled as today Denmark's Lego announced a decline in revenues and plans to eliminate 1,400 jobs.

Despite the growth in China, Lego still saw an unexpected drop in results. Profits slipped 3 percent to 3.4 billion kroner ($544 million).

Lego now employs around 900 staff in the UK.

The company, he said, needs to simplify its business model to reduce costs.

"The Lego Batman Movie", an animated film featuring the superhero and the company's bricks, hasn't generated the sales of spinoff merchandise that Toys R Us or Lego expected, he said.

Lego admitted that the organisation had become too complex over the past five years, due to its rapid expansion, to support future global growth.

"In the process, we have added complexity into the organization which now in turn makes it harder for us to grow further", Knudstorp explained.

Knudstorp said: "We believe our most important contribution to society is through creative LEGO play experiences, as play is critical for children's learning and development". Christiansen will start October 1.

According to their most recent press release, the LEGO Group's revenue for the first half of 2017 is 5 percent down compared with the same period in 2016.

Like this


06 September 2017
Tencent Backs German Startup's High-Speed Flying Jet Taxi
With the new funds, Lilium's hyper-efficient, zero emission, low-noise passenger jet is now in accelerated development. Prices are not yet determined, but an app under development could be used to hail one of the company's mini-planes.

06 September 2017
Pakistan holds key envoys' conference on US South Asia policy
Prime Minister Shahid Khaqaan Abbasi will address the meeting on concluding session which will be held on September 07. Being a peace-loving country, Pakistan wants amicable ties with neighbours on equal basis, the foreign minister said.

06 September 2017
Microsoft Details Mouse and Keyboard Support on Xbox One
Not in terms of drivers and functionality, the Xbox One runs a version of Windows 10 after all, but in the implication. Players are adept at both functions and Microsoft will also base their development on player comments and input.

06 September 2017
Media Won't Talk About Democratic Sen. Bob Menendez's Corruption Trial
In March of this year, the Supreme Court rejected a motion from Menendez that sought to block the case from going to court. Bob McDonnell's federal bribery conviction, laying out a narrow definition of what constituents an "official act".

06 September 2017
Futaisi attends Hamad Port opening in Doha
Meanwhile, the former Doha Port near the Museum of Islamic Art is being redeveloped into a cruise terminal to receive tourists. The Port is spread over 28.5 square kilometres, and is 4km long, 700 metres wide and 17 metres deep.

06 September 2017
Mayor threatens to sue if Trump deports young Caribbean 'Dreamers'
It affects almost 800,000 undocumented immigrants in the U.S. "I feel betrayed by my own country", said Burks. Late Tuesday, President Trump defended the decision to phase out the DACA program.

06 September 2017
Kia reveals crossover-inspired Picanto X-Line
Inside, an 8.0-inch touch-screen interface is available with Kia Connected Services, along with Apple CarPlay and Android Auto. The front and rear bumpers have been reshaped from its predecessor and there's the trademark Kia "tiger nose" grille.

06 September 2017
Bitcoin falls after PBoC bans initial coin offerings
China is the world's largest cryptocurrency market and ICOs have raised about $400 million worth of investment there. The growth and popularity of ICOs has presented challenges for regulators, who seek to mitigate unnecessary risks.

06 September 2017
Supreme Court permits rape survivor to abort 31-week-old foetus
A Bench of three judges led by Chief Justice Misra, accompanied by Justices Amitava Roy and A.M. The rape survivor will undergo abortion on September 8 at Mumbai's JJ Hospital.

06 September 2017
Swiss invent new pink chocolate
No berries, berry flavor or color is added to ruby chocolate, which Barry Callebaut introduced in Shanghai Sept. 5. Those aren't adjectives we'used to hearing describe chocolate, so we're certainly curious.