Workers at Mattel's El Segundo headquarters were bracing Wednesday after the toy company behind Barbie and Hot Wheels filed a notice with the state to lay off 120 employees.
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The layoffs will impact roles across marketing, design and information technology, with some affected employees holding managerial, director and vice president positions, according to the notice.
Under the WARN Act, employers must notify employees, as well as state and local officials, at least 60 days before a mass layoff. Mattel filed its notice Monday, stating that affected workers will begin leaving the company on May 19.
"They are intended to strengthen our organizational structure to drive our growth objectives and optimize our operations," Mattel spokesperson Catherine Frymark said in a statement to the Los Angeles Times.
Toy companies have been preparing for the potential impact of President Trump's tariffs on imports from Canada, Mexico and China, where many of their products are manufactured.
The layoffs are part of a cost-cutting initiative Mattel launched last year to boost profits.
Chief Financial Officer Anthony DiSilvestro said at an investment conference last Thursday that 30% of the cost reductions will target "selling, general, and administrative" expenses.
That same day, CEO Ynon Kreiz told investors that Mattel was in its strongest position in years. Four days later, the company filed its WARN notice.
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