Takara and Tomy to lay off 15 percent of workforce

[Snowman81]

Japanese toy makers announce cost-cutting strategies for their upcoming merger.

 

In a press meeting held yesterday, Japanese toy makers Takara and Tomy announced the first specific plans regarding business strategies after their merger on March 1, 2006. The two companies plan on reducing costs by 19 billion yen ($173 million) in the first three years after joining together as Takara Tomy. As a part of the cost cut, Takara and Tomy will lay off 15 percent of their combined work force by next March, which accounts for 640 employees. Most of the layoffs will be on Takara's side, where there seems to be more redundancy in employee duties.

 

To further cut costs, Takara and Tomy will scale back on its range of products by 30 percent, down from 7,800 items to 5,400. The two companies will also reduce promotional expenses and operations that overlap. In addition, Takara will retreat from its little-known home electronics business and electric car business, which has been losing money.

 

Takara and Tomy are currently Japan's second- and third-largest toy makers, respectively. The two companies, of course, also publish games and interactive adaptations of their owned intellectual properties. After the merger, Takara Tomy will focus its operations towards its core toy business and the expanding digital entertainment sector.

 

During the press meeting, the two companies announced they have co-established a new subsidiary together with mobile-content provider Index Corporation, which acquired 22 percent of Takara's stake from Konami in April. Named T2i Entertainment, the subsidiary will function as the central office for Takara and Tomy's content production and digital entertainment business. POSTED: 08/25/05 10:59 AM PST - Gamespot.com

[Lord Madhammer]

in before panicky posts about TFs being doomed

[Blitz]

well i think most of thise guys will be middle manigment you know paper pushers call center guys etc

 

seeing as thier keeping thier core lines i dont think tf's and/or microman will be going away any time soon

[ErikB]

hmmm.....anyone think this might lead to a company made video game? Transformers the game, by the people who actualy make TF's? Might have been why hasbro bought back all their gaming rights as well (i might be missreading the article).

 

Hate to see downsizing, but they said it will increase the focus on toys, TF's will be getting some kool stuff i bet in the next few years.

[TMan978]

I want some Hasbro Micro Man. Could they make money off of that. I'd start buying GIJoes if they had those bodies.

[Slagatron]

DOOMED, Transformers are DOOMED I tell you!

 

Is anyone thinking of the children? What about the children? Won't someone PLEASE think of the children?

[Thad_theImpaler]

TF's aren't doomed, but this does mean that there won't be any more bonus TF toys like the PVC's & WST's (i love those little suckers...) :(

[Slagatron]

TF's aren't doomed, but this does mean that there won't be any more bonus TF toys like the PVC's & WST's (i love those little suckers...) :(

<{POST_SNAPBACK}>

 

I was attempting to be sacastic. Don't mind me, I have a real dry sense of humor.

[Tripredacus]

First concern is the layoffs. They aren't likely to lay off designers but that is always a possibility. Also the 30% drop in production. I don't know what they mean by "items" but it may just mean individual toys. Expect Galaxy Force and Binal Tech (or Robot Masters) to remain, but the other lines might get axed. Kabaya will still make their toys, that wouldn't be an issue. Expect less give-aways and less media exclusives, and perhaps less Lucky Draws or even ax that whole concept. Expect less cross-over toys like Godzilla and Batman Microman. They'll drop to what they know works, not flood the market with a billion things, and after a few years, perhaps endevour to go in that direction again.

[GaoGaiGar]

Alternators are getting a big push in 2006 from Hasbro, and they have a ton of new Minicons coming out too.

 

That gives Takara easy access to two ready-made toylines: Binaltech & Micron Boosters.