Mattel Announces Another Round of Layoffs

The toy giant plans to cut 65 jobs at its El Segundo headquarters in May.

Mar. 30, 2026 at 6:23pm

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A minimalist studio still life photograph featuring a sleek laptop, a modern desk lamp, and a polished metal paperweight, symbolizing the abstract concepts of corporate strategy and market shifts.As Mattel navigates a shifting toy and entertainment landscape, its latest round of layoffs reflects the company's efforts to streamline operations and adapt its business model.Los Angeles Today

Mattel, the company behind iconic brands like Barbie and Hot Wheels, has announced another round of layoffs, this time affecting 65 employees at its El Segundo, California headquarters. This comes about a year after the company let go of 120 workers as part of ongoing restructuring efforts.

Why it matters

Mattel has faced a series of challenges in recent years, including lackluster sales, a 25% drop in its stock price, and the need to shift its focus towards more profitable digital gaming ventures. These latest layoffs are part of the company's efforts to streamline operations and adapt to changing market conditions.

The details

According to a notice sent to state and local officials, the 65 layoffs will take effect on May 22. Mattel is legally required to provide at least 60 days' notice for major layoffs. This follows the company's decision to let go of 89 workers in January as part of a restructuring of its global brands team.

  • Mattel announced the latest round of layoffs on March 23, 2026.
  • The 65 employees will be laid off effective May 22, 2026.

The players

Mattel

A major toy company known for iconic brands like Barbie and Hot Wheels, which has faced challenges in recent years and is undergoing restructuring efforts.

Ynon Kreiz

The Chief Executive Officer of Mattel, who has emphasized the company's focus on expanding into more profitable digital gaming ventures.

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What they’re saying

“Success in our toy business will drive success in entertainment, and success in entertainment will drive greater success in toys. We are looking to fully capitalize on this virtuous cycle.”

— Ynon Kreiz, Chief Executive Officer, Mattel

What’s next

Mattel will continue to monitor market conditions and make further adjustments to its workforce and business strategy as needed to remain competitive in the evolving toy and entertainment landscape.

The takeaway

Mattel's latest round of layoffs highlights the ongoing challenges facing the traditional toy industry, as companies like Mattel seek to adapt to changing consumer preferences and the rise of digital entertainment. The company's focus on expanding its digital gaming presence reflects an effort to diversify its revenue streams and find new avenues for growth.