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Lego to fire 1,400 in wake of poor results

Christian Wenande
September 5th, 2017


This article is more than 7 years old.

Disappointing 2017 to lead to staff cuts of at least 500 in Denmark alone

Apparently, not everything is awesome (photo: Lego)

Danish toy producer Lego is facing severe staff cuts following what has been a disappointing 2017 thus far.

Revenue fell by 5 percent to 14.9 billion kroner during the first half of the year, while the operating profit fell by 6 percent to 4.4 billion kroner. A total of 1,400 employees will be let go as a result – including over 500 in Denmark alone.

“We are very sorry to make changes that may interfere with the lives of many of our colleagues.  Our colleagues put so much passion into their work every day and we are deeply grateful for that. Unfortunately, it is essential for us to make these tough decisions,” said the LEGO Group chairman, Jørgen Vig Knudstorp.

READ MORE: Architect-designed, full-scale Lego play house to open shortly

Reset button
Knudstorp contended that over the past five years, Lego had become an increasingly complex organisation in an effort to support global double-digit growth.

This organisational intricacy had made it more difficult to generate further growth and the company has been forced to hit the “reset button”.

“This means we will build a smaller and less complex organisation than we have today, which will simplify our business model in order to reach more children. It will also impact our costs,” said Knudstorp.

“Finally, in some markets the reset entails addressing a clean-up of inventories across the entire value chain. The work is well under way.”


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”