Mattel Inc. said on Thursday that it plans to cut $250 million to $300 million in costs by 2016. Mattel has cut over $550 million in costs the past five years. Chief Financial Officer Kevin Farr said at an analyst meeting that Mattel will reduce redundancies and consolidate some teams, including its digital team, which is currently fragmented across brands and regions into a global operation. The company will invest in automation manufacturing as labor costs in countries such as China and Indonesia have risen in the double digits. He also reiterated the company's long-term goal of sales growth in the mid-single digits and said acquisitions, which have included American Girl and Fisher-Price, will continue to be a key company strategy. Mattel stock was little changed in midday trading and is down 35% in the year so far, while the S&P 500 has gained about 7%.
Copyright © 2014 MarketWatch, Inc.