Lego downsize 1400 workforce sales profit drop
You're referring to the recent news about the LEGO Group's restructuring efforts!
In October 2020, the LEGO Group announced that it would be downsizing its global workforce by around 1,400 employees, which is approximately 10% of its total workforce. This move was part of a larger effort to adapt to changing market conditions and improve the company's financial performance.
The LEGO Group's sales profit dropped by 13% in 2020 compared to the previous year, largely due to the COVID-19 pandemic's impact on the global toy market. The pandemic led to widespread store closures, reduced consumer spending, and supply chain disruptions, all of which affected the LEGO Group's sales.
To address these challenges, the company is focusing on several key areas, including:
- Cost savings: The LEGO Group aims to reduce its costs by around DKK 1.5 billion (approximately USD 225 million) by the end of 2022. This will be achieved through a combination of workforce reductions, process improvements, and other cost-saving measures.
- Digital transformation: The company is investing in digital technologies to enhance its e-commerce capabilities, improve customer engagement, and streamline its operations.
- Product innovation: The LEGO Group is focusing on developing new and innovative products that appeal to a wider range of consumers, including adults and children.
- Geographic expansion: The company is expanding its presence in emerging markets, such as Asia and Latin America, to drive growth and diversify its revenue streams.
By taking these steps, the LEGO Group aims to return to its growth trajectory and maintain its position as a leading global toy manufacturer.