Lego to cut 1,400 jobs and ‘reset company’ after sales drop

Company planning to keep Enfield facility open

FILE- Danish toy maker Lego said Tuesday, Sept. 5, 2017, it will cut 1,400 jobs, or about eight percent of its global workforce, after reporting a decline in sales and profits in the first half of 2017. (AP Photo/Francois Mori, File)

ENFIELD, Conn. (WWLP) – Lego will be laying off nearly 10 percent of its workforce, though it is not clear at this time where those layoffs will occur.

A Lego senior manager told 22News that they do not have any plans to close their facility in Enfield, Connecticut, near the Massachusetts state line.

Lego announced that their revenues dropped by 5% in the first six months of the year. The company blames weaker demand in the U.S. and Europe. It is the first time since 2004- 13 years ago when the company was near bankruptcy- that their sales dropped. The plan now is to cut jobs and “reset the company.”

Here are the layoffs by the numbers: Lego has 18,200 employees across the globe. The company is expected to lay off 1,400 people, or roughly 8% of their workforce.

Lego will have a new chief executive starting in October. They plan to build a smaller and less complex organization to simplify their business model and reach more children.

The senior manager 22News spoke with said that as of now, it is unclear where those 1,400 layoffs will occur.