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LEGO® to cut up to 1,000 jobs

Business Newswire March 2, 2004

COPENHAGEN - Beleaguered Danish toy giant LEGO®, will lay off up to 1,000 employees worldwide, or 12% of its staff, after registering record losses in 2003, the Danish financial daily Boersen reports.

LEGO announced in January that it expects to post a loss of 1.4 billion kroner in 2003, only its third loss since the company was founded in 1932 and its biggest loss ever.

LEGO owner and president, Kjeld Kirk Kristiansen - the 56-year-old grandson of company founder Ole Kirk Christiansen - had said the company now planned to change its strategy after attempts to diversify its brand name failed.

He had indicated that the changes would inevitably lead to job cuts.

Company spokeswoman Charlotte Simonsen would only confirm that jobs would be cut, but would not say how many.

“It is clear that our new strategy will lead to lay-offs. But we have not yet decided how many jobs will go nor which divisions will be affected,” she said.

LEGO “will announce its worldwide staffing decisions at the end of March,” she added.

LEGO launched a major restructuring between 1998 and 2000 that resulted in 1,500 job cuts, bringing its headcount to 7,500 people.

But “we have since done some hiring, so we had a total of 8,500 employees at the beginning of 2003 before bringing the number down to 8,000 today,” Simonsen said.

LEGO has some 3,000 employees in Denmark. "

Da ham wa den Salat :-(

Ronald


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