Toy giant Mattel, the maker of Barbie and Hot Wheels, is laying off employees from its El Segundo headquarters, according to a notice to state authorities.
The company is expected to permanently lay off 65 employees from its headquarters located at 333 Continental Blvd in El Segundo, Los Angeles County, according to its official WARN notice.
Under the Worker Adjustment and Retraining Notification Act (WARN) Act, employers are legally mandated to provide a minimum of 60 days’ notice prior to plant closures, mass layoffs, or major relocations. The notice gives local agencies and staff time to prepare, according to WARN.
Mattel submitted the documentation on March 23, 2025, and it was processed the following day. The layoffs will be effective from May 22, 2026, the WARN filing showed.
This is the second time Mattel has laid off employees from its headquarters within a few months. In January 2026, the company laid off 89 employees, according to WARN filings.
Citing a Mattel spokesperson, a news report by Los Angeles Business Journal said that the layoffs in January were part of its effort to restructure its global brands team.
Most of the impacted employees held senior or executive positions, including significant roles on Barbie, action figures, and games teams, the report added.
In March 2025, Mattel laid off 120 workers from its headquarters, most of whom held positions like manager, director, and vice president, according to a Los Angeles Times report. The job losses were part of the cost-cutting effort as the company focused on maximizing its profits.
Citing Mattel spokesperson Catherine Frymark, the news report said that the company was targeting $200 million in cost savings by 2026.
Earlier layoff notices showed that Mattel reduced 439 employees from its El Segundo headquarters since 2020, according to the Los Angeles Business Journal.
Mattel’s Declining Profitability
Mattel’s recent layoffs come as its financial performance reveals a gap between revenue and profitability.
In its fourth quarter and 2025 financial results, the company reported a 7% increase in Q4 sales. However, profit shrank with net income slipping by $35 million to total $106 million.
For the full year 2025, net sales saw a marginal decline of 1%, while net income decreased by $144 million to stand at $398 million, according to Mattel.
In addition to the rough financial performance, Mattel is also impacted by the potential impacts of President Donald Trump’s tariffs from Canada, Mexico, and China.
Earlier in 2025, Mattel tried offsetting costs from increased tariffs by hiking its prices in the U.S., according to the Los Angeles Business Journal.
About Mattel
One of the leading global toymakers, Mattel is known for its franchise brands, including Barbie, Hot Wheels, Fisher-Price, American Girl, UNO, Masters of the Universe, Thomas & Friends, and more.
Mattel was founded in a garage in 1945 as a joint venture by Ruth and Elliott Handler, and Harold ‘Matt’ Matson. Over the years, Mattel has launched several brands that have gained immense popularity among children.
In addition to its popular toys, the company also offers content, consumer products, and digital and live experiences.
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