Funko Undergoes Major Layoffs & Restructuring

Funko, the toy and collectible company that put Pop! in the pop culture disclosed in a securities filing Friday that they are facing a reconstruction and will be laying off between 180-200 employees, representing about 12-13 percent of its workforce.

The company will incur charges of up to $2.8 million associated with the layoffs, but that will result in $20 million to $22 million of annualized run rate cash savings. Funko feels that reducing their staff is part of the company's task to re-balance their cost structure into main parts of the company that will make give them more long-term growth and improve margins. In doing so, this will make the company reduce areas of lesser importance to their products and establishments.

This isn't the first time Funko has done layoffs as they have already laid off 150 employees earlier this year, and cut back its collectible movie poster business which operated under the Mondo brand name, which it had acquired for $14 million just a year earlier.

Funko is best known for its Funko Pop! figurines, which are based on licenses to well-known entertainment, sports, and pop culture franchises. The company expanded and pushed into more premium collectibles, but with the market taking a steady decline after the COVID-19 pandemic, the sale of the companies products have slowed to a steady crawl, which forced the company to literally dump $30 million worth of its inventory into a land-fill dump.

Source: The Hollywood Reporter