Danish toy maker Lego, which has a main office in Enfield, Connecticut, says it will cut 1,400 jobs, or about 8 percent of its global workforce, after reporting a decline in sales and profits in the first half of 2017.
The privately held company said Tuesday that its revenue dropped 5 percent 14.9 billion kroner ($2.4 billion). Profits slipped 3 percent to 3.4 billion kroner (544,000). It said it "now prepares to reset the company."
Last month, the maker of the famous colored building blocks appointed Niels B. Christiansen, who headed thermostat-maker Danfoss for nine years, as its chief executive to replace interim British CEO Bali Padda.
“We are disappointed by the decline in revenue in our established markets, and we have taken steps to address this,” LEGO Group Chairman, Jørgen Vig Knudstorp said in a statement. “We are working closely with our partners and we are confident that we have the long-term potential of reaching more children in our well-established markets in Europe and the United States. We also see strong growth opportunities in growing markets such as China.”
Based in western Denmark, Lego does not release quarterly figures.
The company has not released any information about the impact this will have on the Enfield offices.
“We remain committed to the state of Connecticut and will maintain our office here,” Michael McNally, senior director of brand relations for Lego, said in an email.
