URGENT UPDATE: Mattel, the iconic toymaker behind Barbie and Hot Wheels, has just announced the layoff of 89 employees at its El Segundo headquarters as part of a significant restructuring of its global brands team. The layoffs are set to commence on January 12, 2026, as confirmed in a letter from Karen Ancira, Mattel’s executive vice president and chief people officer, filed with the state’s Employment Development Department.
This move is a critical step in Mattel’s ongoing efforts to cut costs and enhance profitability, especially in light of potential impacts from President Donald Trump’s tariffs on global imports. The company aims to achieve $200 million in cost savings by the end of 2026, further underscoring the urgency of this restructuring.
Ancira emphasized the company’s commitment to its workforce, stating, “We greatly value the contributions of all our employees and do not take any action regarding our workforce lightly.” The layoffs were initiated under the Worker Adjustment and Retraining Notification (WARN) process, which mandates notification for large-scale layoffs.
The affected positions primarily belong to the global brands team, including roles in brand marketing, franchise marketing, and product design. This restructuring follows a previous round of layoffs in March 2025, where 120 workers were let go across various departments, including marketing and information technology.
A Mattel spokesperson told the Southern California News Group that the changes follow a strategic shift towards a new brand-centric organizational structure aimed at integrating marketing efforts. This initiative is designed to leverage resources effectively, enhancing brand management strategies to drive future growth.
In September, Mattel also announced the formation of a new leadership team poised to accelerate growth in its entertainment sector. This includes newly created roles such as the global head of dolls and global head of vehicles, with Roberto Stanichi, a veteran with two decades at Mattel, stepping into the newly established position of executive vice president and chief global brand officer.
As the toy industry faces evolving consumer demands and economic pressures, these layoffs indicate a broader trend of strategic realignment within major companies. Mattel’s focus on its core brands—like Barbie and American Girl—reflects a necessity to innovate and adapt in a competitive market.
Stay tuned for further developments as Mattel navigates this challenging transition and works toward its ambitious cost-saving goals. The impact on the affected employees and the company’s future strategies will be closely watched in the coming weeks.
