Toy company Funko has announced that it will be laying off between 180 to 200 employees, which amounts to approximately 12% to 13% of its workforce. The decision is part of the company’s efforts to “rebalance its cost structure” and focus on areas that are expected to drive long-term growth and improve margins. The layoffs are expected to result in annualized cash savings of $20 million to $22 million.
The move comes after Funko’s attempt to move into a more prestigious market with the acquisition of Mondo from Drafthouse earlier this year, which was later significantly downsized. The company has been known for its popular line of featureless Funko Pop figures and subsidiaries like Loungefly and Mondo.
As of now, it remains unclear which departments within the company will be impacted by the layoffs. The company will incur charges of up to $2.8 million associated with the layoffs. The decision comes as Funko aims to streamline its operations and focus on areas that have greater growth potential.