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Lego Cuts 380 Jobs as Toymaker Shuts Down Some Danish Factories

February 05, 2013

Lego A/S said it will cut 380 jobs as Europe’s biggest toymaker closes some of its production in Denmark over the next two-and-a-half years to save costs.

Lego will move its Danish packaging and brick decorating functions to existing sites in the Czech Republic, Hungary and Mexico, the closely-held company, based in Billund, Denmark, said today in an e-mail.

Lego in August said its share of the global toy market rose to more than 8 percent as it unveiled plans to hire 1,000 more workers, including some in Denmark, to meet demand for its bricks. The company, which has tripled sales in the eight years since Chief Executive Officer Joergen Vig Knudstorp took over, said today it will keep its plastic foundry operations in Denmark.

“Some workers may leave through attrition, others may develop new skills and find other positions in the Lego Group, but we won’t avoid having to fire workers,” Knudstorp said in a statement.

Lego said Aug. 31 that net income in the first six months of 2012 jumped 36 percent as the company sold more than twice as many new building-block sets for girls as estimated.

Knudstorp was in December voted Denmark’s best CEO in a survey conducted by think tank Mandag Morgen based on interviews with 876 business leaders.

To contact the reporter on this story: Christian Wienberg in Copenhagen at

To contact the editor responsible for this story: Tasneem Brogger at

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