Lego to cut 1,400 jobs as sales drop

FILE- In this Tuesday, April 5, 2016 file photo, an employee sorts Legos in the the new LEGO flagship store unveiled as part of the new Les Halles shopping mall during the press visit in Paris. Danish toy maker Lego said Tuesday, Sept. 5, 2017, it will cut 1,400 jobs, or about eight percent of its global workforce, after reporting a decline in sales and profits in the first half of 2017. (AP Photo/Francois Mori, File)

It has been 13 years since Lego suffered an annual revenue decline, but this time around, the toymaker is making some big cuts.

The job cuts, which account for roughly 8 percent of the Lego workforce, were announced Tuesday along with a slump in profit and sales for the first six months of 2017.

The company says it all comes from “intense pressure” from the evolution of video games and electronic toys in the early 2000s.

“We have added complexity into the organization which now in turn makes it harder for us to grow further,” Lego chairman Jorgen Vig Knudstorp said in a statement. “As a result, we have now pressed the reset button.”

The company said a majority of the 1,400 positions will be gone before the end of the year.
Read the full story on CNN Money.

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