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Mattel to cut 3,000 jobs
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April 15, 1999: 9:43 a.m. ET
Largest toy maker also plans to launch Internet venture, may take it public
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NEW YORK (CNNfn) - Mattel Inc., still in a sales slump despite signs of improvement, said Thursday it will reduce its work force by 10 percent, or 3,000 jobs, and close some facilities as part of a restructuring.
The Hawthorne, Calif.-based toy maker, the nation's largest in sales, says the restructuring and costs related to its merger with The Learning Co. will result in a $300 million-$350 million pretax charge in the second quarter.
"We expect these combined actions to result in cost savings of approximately $50 million in 1999 and at least $400 million over the following three years," Jill Barad, Mattel's chairwoman, said.
Mattel also said it will spend $50 million on a new Internet marketing initiative. That initiative is expected to result in a subsidiary, and could lead to a public offering of part of it later this year.
The company Thursday announced a first-quarter loss of $17.9 million, or 7 cents a share, compared with earnings of $12.7 million, or 4 cents a year earlier. Sales declined 2 percent to $692.1 million.
Mattel closed Wednesday at 25-15/16, up 3/4. 
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Mattel
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