Mattel is cutting another round of staff at its El Segundo headquarters, with roughly 65 employees slated to lose their jobs. The toy maker filed a new WARN notice late last month that lists May 22 as the planned separation date for those roles. It is the latest in a series of job cuts at the South Bay campus over the past year.
What the notice says
According to the Los Angeles Times, Mattel submitted the notice on March 23 and identified about 65 positions that are expected to be eliminated on May 22. The filing triggers the 60-day advance notice period employers must follow under California and federal WARN rules.
Another round in a string of cuts
This latest reduction follows earlier cuts on the same campus. The company eliminated roughly 120 workers in 2025 and filed a notice that led to 89 jobs being cut in January, based on state WARN filings and reporting by the Los Angeles Business Journal. Layoff trackers and public WARN records show Mattel has filed multiple notices in recent years as it looks for cost savings. The Business Journal reported that many of the more recent layoffs hit senior and brand-marketing staff on Barbie, action-figure, and games teams.
Financial squeeze and strategy shift
Mattel reported about $5.3 billion in net sales for 2025 and says it is redirecting resources into entertainment and digital gaming in an effort to lift profit margins over time, according to the Los Angeles Times. The company’s stock tumbled in February after an earnings report and outlook that fell short of Wall Street expectations, which has increased pressure on executives to find more savings. Leadership has linked the restructuring and hiring changes to a plan to more tightly connect its toy business with entertainment projects.
What the company is betting on
In its investor materials, Mattel said it has acquired full ownership of mobile game studio Mattel163 and is putting more money into digital games and first-party content as its long-term growth engine, per Mattel investor relations. The company points to recent launches, including UNO-branded experiences on Roblox and Fortnite, along with licensing deals that pair toy assortments with movie and streaming releases, as examples of that strategy in action.
What South Bay workers should watch
The March WARN filing starts the required notice period ahead of the May 22 separations, and employees who could be affected are likely to receive formal notifications and severance details in the coming weeks. Mattel has not released a detailed breakdown of the cuts and "declined to share an updated team size" with local business outlets, according to reporting by the Los Angeles Business Journal. Local suppliers and colleagues in El Segundo will be watching closely to see whether the company trims more corporate roles or shifts additional work into its entertainment and digital units.
