Mattel is laying off 120 team members from its headquarters in El Segundo as part of ongoing efforts to boost profits and achieve an additional US$200 million in cost savings by the end of the year. It’s worth noting that this will impact less than 1% of the toyco’s global workforce of 34,000 people.

The company notified employees and state representatives of the layoffs on Monday, in keeping with the California’s mandated Worker Adjustment and Retraining Notification (WARN) Act. A majority of the affected staffers will be let go on May 19. 

Mattel’s notification, which is publicly available, also specifies the positions occupied by individuals affected by these job cuts. The list includes five marketing coordinators, three senior digital designers, three project management associates and more than 10 department directors. 

Last week, Mattel CEO Ynon Kreiz participated in a keynote discussion at the UBS 2025 Global Consumer and Retail Conference, where he said the company is in the strongest position it’s been in for several years. And looking ahead to 2027, he expects that no single country will be responsible for more than 25% of its global production, reflecting work that Mattel is doing right now to rejig its supply chain. 

Toycos worldwide are navigating President Trump’s tariffs on imports from China and Mexico, which both serve as factory hubs for Mattel. Chief financial officer Anthony DiSilverstro said in the company’s Q4 earnings call that China accounts for 40% of Mattel’s total manufacturing output, with Mexico coming in at roughly 10%.