2017 First Half Financial Highlights (compared to first half 2016)
Revenue down 5 percent to DKK 14.9 billion compared with DKK 15.7 billion
Operating profit down 6 percent to DKK 4.4 billion compared with DKK 4.7 billion
Net profit down 3 percent at DKK 3.4 billion compared with DKK 3.5 billion
Cash flow from operating activities was DKK 4.6 billion compared with DKK 3.9 billion
Plan for smaller and simpler organisation
Knudstorp said: “In the process, we have added complexity into the organisation which now in turn makes it harder for us to grow further. As a result, we have now pressed the reset-button for the entire Group. This means we will build a smaller and less complex organisation than we have today, which will simplify our business model in order to reach more children. It will also impact our costs. Finally, in some markets the reset entails addressing a clean-up of inventories across the entire value chain. The work is well under way.”
As a consequence of the plans, the LEGO Group believes it would need to reduce its total global workforce by around eight per cent. This would impact approximately 1,400 positions, the majority before the end of 2017. Currently the LEGO Group employs approximately 18,200 people.
*The full press release is available here.
Article Link: http://toysnbricks.com/1400-employees-w ... ines-by-5/
It's not just price, it's design. There are several sets a year that are $50-$60 a year and are literally just a 2D wall and some minifigures. LEGO lacks the creativity. Best themes of 2017 for mere Friends and NinjaGo Movie because they are different, we haven't gotten 'Ski Resort LEGO before and the NinjaGo Movie sets don't include a single motorcycle and are funned different.Richard J. wrote:I think they need to do more to convince people their product is worth buying for kids and try to reduce the cost of their sets. I love Lego, always have, but it's gotten a lot more expensive than it used to be.
So what does NinjaGo have coming out in 2018? More motorcycles, more recycling of crap from years past. It's a theme that was planned with Skellies and Snakes and now it's like City with just redoing the same thing all the time.
I hope you're right about this. It really drove me crazy when I finally had enough money to get a set I'd had to save up some for and then, BANG! Every. Single. One. GONE! Sometimes OVERNIGHT!anakinisvader wrote:LEGO "investors" are starting to drop like flies.
Took me a little while to notice there was a pattern to it. Apparently some "investor" was periodically going around to all the stores in my part of Georgia and grabbing every one of certain sets.
It stopped a little while back but it still drives me nuts when I'm trying to find a set and it's nowhere to be found in stores but online there's thousands on the secondary market at high markups. Geez, people, follow the anime otaku model if you MUST buy for investment: Buy one to use, one to display, and one to store for later.
In all seriousness though, my heart goes out to those affected by the layoff.
Lego has been getting progressively more expensive for years now, it was only a matter of time before the market would check their growth.
I love the Lego group and pretty much everything about Lego, but they should have seen this coming.
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