Mattel, the renowned toymaker, has revealed its intention to streamline its manufacturing operations as part of a comprehensive cost-savings plan. According to a regulatory filing on Wednesday, the company anticipates incurring total severance and restructuring costs ranging from $100 million to $130 million as a result of this program.
Building on previous cost-saving measures, the initiative aims to reduce expenses within Mattel's global supply chain, specifically targeting its manufacturing footprint. The newly introduced plan, titled the "Optimizing for Profitable Growth" program, is projected to yield annual savings of approximately $200 million. The entire program is anticipated to be completed between 2024 and 2026.
Out of the total expenses related to the program, Mattel expects $90 million to $105 million to be allocated for employee severance. However, the company has not disclosed the exact number of job cuts or the percentage of its workforce that will be affected.
This strategic move by Mattel underscores its commitment to optimizing operations and driving long-term profitability. By streamlining manufacturing processes, the company aims to enhance efficiency while remaining at the forefront of the toy industry.
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