LEGO to cut 1,400 jobs as organisation becomes 'too complex'

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The LEGO Group is reducing its global workforce by 8%. Around 1,400 people are expected to lose their jobs before the end of the year as the company attempts to build a smaller and less complex organisation.

The job cuts were announced on Tuesday [5 September] in conjunction with the company's interim results for 2017. Compared to the first half of 2016, revenue fell 5% while net profit was down 3%.

In a statement provided to Human Resources via email, a LEGO spokesperson said that the proposed cuts will impact mainly salaried positions, and these will be at all levels across the world. "The proposed change is subject to local legal processes and consultation plans in each country, and we are not able to share more detailed information at this stage," she added.

Per a company press release, the LEGO Group has built "an increasingly complex organisation to support global double-digit growth" during the past five years. According to the group's chairman, Jørgen Vig Knudstorp, that complexity is now making it harder for the company to grow.

By letting go 1,400 employees, LEGO aims to build a smaller and less complex organisation, simplifying the business model.

"We are very sorry to make changes which may interfere with the lives of many of our colleagues. Our colleagues put so much passion into their work every day and we are deeply grateful for that. Unfortunately, it is essential for us to make these tough decisions," said Knudstorp.

The LEGO Group will provide affected staff members with redundancy packages which reflect their service to the organisation, including support in transitioning to new positions or new opportunities outside of the group.

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Photo  / LEGO Group