Bad news for the Lego group, one of the world leaders in the toy sector. To cope with the sharp decline in sales in the United States and Europe, in fact, the Danish company has opted for the cut of 1400 jobs worldwide, which correspond to about 8% of the total workforce. Lego currently employs approximately 18200 people.
During the first half of 2017, the toy giant recorded a heavy decrease in turnover (-5% to approximately 2 billion euros) and in net income (-3% to 3,4 billion euros).
The news acquires even more relevance, in a negative sense, when looking at the record results achieved in 2016. The source of the bad results of these first six months of the new year would be the organizational structure that the group has decided to build over the last five years, considered by President of Lego Jorgen Vig Knudstorp (at the top for only a month), "increasingly complex, but necessary to cope with double-digit growth globally".
The next challenge for Lego will now be to build a less complex and smaller organization, strongly focusing on digital. The decline in the main world markets is in fact linked to the now outdated "physical experience of building" that formed the previous generations. To be able to survive in the market, Lego will have to adapt to change in a radical way and open up to growing markets such as China.
