The LEGO Group will also reduce its global workforce by approximately 8 percent.
In addition, net profit was down 3 percent at $544 million, compared to $560 million in the year prior. Operating profit was also down 6 percent at $704 million, compared to $752 million in 2016, which was attributed to lower revenue and increased costs associated with investments in production capacity and organizational capabilities.
Furthermore, performance across the company’s market regions was mixed, with established markets such as the U.S. and parts of Europe reporting revenue declines. Meanwhile, in growing markets such as China, revenue increased by double digits. Top-performing brands among consumers included LEGO City, LEGO Friends, LEGO Duplo and LEGO Technic.
The LEGO Batman Movie
products were also popular.
“We are disappointed by the decline in revenue in our established markets, and we have taken steps to
Additionally, The LEGO Group has revealed plans to build a less complex organization while increasing its focus on its markets and customers across the world. As a consequence of the plans, the company will reduce its total global workforce by roughly 8 percent, or approximately 1,400 positions.
“We are very sorry to make changes which may interfere with the lives of many of our colleagues,” says Knudstorp. “Our colleagues put so much passion into their work every day and we are deeply grateful for that. Unfortunately, it is essential for us to make these tough decisions.”
*Conversions are based on exchange rates as of Tuesday, Sept. 5.
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