Toymaker Lego has announced plans to lay off 8 percent of its workforce after reporting a 5 percent fall in mid-year revenue. The unlisted maker of colourful plastic bricks reported revenue of 14.9 billion Danish crowns ($2.38 billion). As Sonia Legg reports, that still topped My Little Pony producer Hasbro Inc's sales of $1.82 billion and Barbie doll maker Mattel Inc's $1.71 billion.
Lego's been steadily building profits for a good few years now. And latest half year revenue is $2.38 billion. That's more than rivals Hasbro, which produces My Little Pony, and Barbie maker Mattel. But it's not good enough. Revenue has fallen 5 percent and the Danish toymaker has announced plans to lay off 8 percent of its workforce. 1,400 of its 18,200 positions will go - most before the end of the year. Chairman Jorgen Vig Knudstorp said he was sorry for the disruption and had taken steps to address the decline. The move comes a month after Danish industrialist Niels B. Christiansen was appointed CEO. He replaced Bali Padda who had only been in the job for eight months and was the first non-Danish chief executive. A fall in Lego's established markets was the main problem. China is now a key focus for the toymaker - these latest results perhaps making success there even more crucial.