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Mattel to shut New York office amid $650 million cost savings programme

Toymaker Mattel is closing its New York office as part of a previously announced $650 million cost saving plan.

The closing, which will take place in phases through the rest of the year, will affect around 100 employees.

A spokesperson told CNBC that the office was not a strategic location for the company. Most or all of the employees will be relocated to one of the firm’s other principal locations in the US, such as Los Angeles, East Aurora, Middleton Wisconsin and London.

Mattel had announced a cost savings programme in October last year with the goal to eliminate $650 million over two years, a third of which it expects to achieve this year.

The toy company has had a tough year so far, impacted by the bankruptcy and liquidation of Toys R Us, its second largest customer and retailer of many of its exclusives.

“Our fourth quarter performance reflects a tough quarter as part of what was a difficult and extraordinary year for Mattel,” Mattel CEO Margo Georgiadis told analysts at a company earnings call.

Mattel saw net sales drop 11 per cent for the year.

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