H1 results force Lego to cut 1,400 jobs

Updated 2017-09-06 10:00:43 Agencies

Danish toy maker Lego 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.

The privately held company said Tuesday that its revenue dropped 5 percent to 14.9 billion kroner (.4 billion) in the first six months of the year. Profits slipped 3 percent to 3.4 billion kroner. It said it "now prepares to reset the company."

"We are disappointed by the decline in revenue in our established markets, and we have taken steps to address this," said Chairman Joergen Vig Knudstorp.

He said the long-term aim is to reach "more children in our well-established markets in Europe and the United States," and added there were "strong growth opportunities in growing markets such as China."

Lego, which he described as an "increasingly complex organization," needed to simplify its business model and cut its costs.

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. Christiansen will start October 1.

Based in western Denmark, the group has over 19,000 employees around the world.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58October 20 2017 23:50:21

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16October 20 2017 23:50:21

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18October 20 2017 23:50:21

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords