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Lego has announced it is looking to expand into China despite the fact it is set to cut 8% of its global workforce.
The company’s Chinese ambitions come following strong financial results for the 2018 financial year, which saw revenue rise by 4% up to £4.1bn during last year with profits hitting £900m. The move to cut staff comes as part of the company’s efforts to “reset” the business after it announced it was “stabilising the business” in 2018.
In March 2018, Lego announced that sales had decreased for the first time since 2004, with the brand blaming a crowded toy market and the fall of Toys R’ Us damaging consumer exposure.
Just last weekend Lego opened its first Chinese flagship store in Beijing, with plans afoot to open 80 stores in 18 Chinese cities this year as the company plans to build on recent sales success in Asia.
Lego CEO, Niels B Christiansen, said: “We are especially encouraged by our progress given the challenges facing the toy industry and the departure of specialist retailers such as Toys R Us that went under last year.
“These shifts gave us the opportunity to strengthen our partnerships with retailers and find new ways to connect with shoppers and consumers across digital and physical channels. We also grew market share in our largest markets around the world, bucking industry trends.”
