Mattel is cutting jobs once again as part of its ongoing cost-control strategy, marking the latest step in a multi-year effort to streamline operations and improve profitability.

The company plans to lay off around 65 employees at its El Segundo, California headquarters, with the cuts expected to take effect in May 2026. The move follows earlier workforce reductions, including approximately 120 layoffs in 2025 and about 89 job cuts earlier in 2026, underscoring a sustained restructuring effort across the business.

Mattel has said the layoffs are tied to “optimize” its organization and reduce expenses, with a broader goal of achieving roughly $200 million in cost savings by 2026. The cuts have largely impacted corporate roles, including positions in marketing, design, and brand management as the company reorganizes its global teams.

The restructuring comes as Mattel faces softening demand in the toy market, with annual revenue hovering around $5.3 billion and showing slight year-over-year decline. Sales of key brands, including Barbie, have cooled following a surge tied to the brand’s recent entertainment success, while broader economic pressures have led consumers to pull back on discretionary spending.

At the same time, Mattel is accelerating its shift toward a more diversified business model. The company is investing more heavily in digital gaming, film, and entertainment partnerships, aiming to generate revenue beyond traditional toy sales and better leverage its portfolio of well-known intellectual property.

The latest round of layoffs highlights the challenges Mattel faces as it balances short-term financial pressures with long-term transformation, While cost-cutting measures may help stabilize margins, the company’s continued restructuring signals that further changes could be ahead as it adapts to an evolving consumer and media landscape.