Lego to cut 1,400 jobs and 'reset company' after sales drop

Lego will outlive us all.

1,000,000 years from now when Man is long gone and aliens set foot on Earth for the first time they will step on a Lego brick.

This is too funny to me because of how true it it. Stepping on Legos unintentionally barefoot is the worst! Kids never pick up their toys.
 
The licenced sets are too much, especially the sets aimed at little girls (which seem cost way more than the sets aimed at the more traditional Lego audience). At least in Canada.

Basic Lego kits aren't too bad, given the quality of the product.
 
The licenced sets are too much, especially the sets aimed at little girls (which seem cost way more than the sets aimed at the more traditional Lego audience).

Basic Lego kits aren't too bad, given the quality of the product.

The custom molds for the mini dolls I think drive up the cost on the Friends, Elves, and Super Hero Girls sets. If they used regular mini figs it would probably help.
And while the new colored bricks are a big appeal in the Friends and Elves lines, only using them in those lines probably drives costs up too.
Also a shame that people will ignore those lines because they are "for girls." There are some really solid sets in those series.

And yes, the quality of the product is why it is expensive. I am still using bricks from over 30 years ago with stuff I bought less than 3 days ago. That is some damn good longevity.
 
How much do licenses cost for all the sets? Disney must charge a ton D:

I have a feeling lego dimensions are to blame, those things just sit on shelves and don't sell.
 
B-b-but it comes out to 10 cents a brick which is actually a really great value for this *insert Licensed Property* set! /LegoGAF

If my kid asks for LEGO it's a big "NOPE" from both of us, which is a shame. Just way too much money for some of these sets. If he's really got his heart set on one particular set we'll just go to AliExpress and buy the LEPIN version for 1/4th the price.

You can save money by buying knockoff clothes, shoes, bootleg game carts and downloading roms too. Doesnt make it right and you are robbing the designers of their compensation.
 
How much do licenses cost for all the sets? Disney must charge a ton D:

I have a feeling lego dimensions are to blame, those things just sit on shelves and don't sell.

That hurt quite a bit I think. And them trying to launch new custom IPs like Nexo Knights and Chima only to see them flounder quickly doesn't help either.
 

Based on my experience with the company as a wholesale buyer, I'm not surprised. There are a lot of small/medium issues that add up, but the biggest problem I have is there is just way too much product. Not necessarily too many themes, but too many items under each theme.

Other issues:
Margins are terrible (discount is only 20-35% off of MSRP).

Damaged box rate is 2x-4x industry average. This is due to the fact that they use flimsy cardboard. I suggested to use double wall boxes and they said the reason they don't is because they care about the environment. Trust me, there is much more damage done to the environment today due to all the time/energy/resources spent on dealing with damaged product.

Oversupply. Not only does LEGO have too many products, they also manufacturer too much of it. I used to say selling LEGO felt like selling gold. With their changes over the last 3-5 years, the brand has really lost its mojo. They are still better than the other 2 big toy brands, but it is still really hard to make money selling their entire line.
 
Yooooo, I never considered bootleg Legos. Ghostbusters firehouse for $150?! Damn. I'm pretty much in!

You get what you pay for
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The price has remained the same for 30 years now (when I was a kid they were $.10/brick) but when I was a kid I could spend $3 and get a little car. Now you have to spend $10 to get a small set and those are rare. I loved taking my money and spending less than $5 and building a little set. As a kid it was exciting. Plus we were poor so I never got big sets.

Now they have gone a bit too crazy with huge sets and out priced kids with allowance money, birthday money, etc. Now only mom and dad can buy sets and then it is only for birthdays and Christmas if the parents can afford it. They need to scale back and reduce the price.
 
Cutting underperforming toy lines makes sense.

Although, maybe pricing sets reasonably would move more underperforming sets. The last time I was in a Target I scoped out some of the LEGO sets, and hot damn, some of the most basic sets are pretty fucking pricey, let alone some of the more elaborate ones that are in the triple digits.

Nowadays, most parents would rather buy their kid a video game for that $60 than a LEGO set. I grew up on LEGOS, and I've always loved them, but I probably had one, maybe two sets in my lifetime. Some of my cousins that were more well off than I was had garbage buckets full of LEGOS. I admit I was quite jealous. My gas station set had me thinking real fucking creatively, that's for sure. XD
 
The custom molds for the mini dolls I think drive up the cost on the Friends, Elves, and Super Hero Girls sets. If they used regular mini figs it would probably help.
And while the new colored bricks are a big appeal in the Friends and Elves lines, only using them in those lines probably drives costs up too.
Also a shame that people will ignore those lines because they are "for girls." There are some really solid sets in those series.

And yes, the quality of the product is why it is expensive. I am still using bricks from over 30 years ago with stuff I bought less than 3 days ago. That is some damn good longevity.

As someone who grew up with the 80s/90s minifigs, having those larger ones in the lines you mentioned does feel "un-Lego". However, my daughter was instantly drawn to those, even though we never push gendered toys on her. She's still a bit young for actual Lego, but I wouldn't mind getting her started on it in about a year.
 
As someone who grew up with the 80s/90s minifigs, having those larger ones in the lines you mentioned does feel "un-Lego". However, my daughter was instantly drawn to those, even though we never push gendered toys on her. She's still a bit young for actual Lego, but I wouldn't mind getting her started on it in about a year.

Obviously Duplo first, but after that look into the Juniors line. It is the perfect transition from Duplo to regular system sets.
 
Any decent set is far too expensive. It's more like toys for adults than children...

I'd guess Minecraft is starting to eat into their sales in a big way too.
 
Any decent set is far too expensive. It's more like toys for adults than children...

I'd guess Minecraft is starting to eat into their sales in a big way too.

TBH, Mattel and Hasbro have went the same way. Who do you think buys leader class Transformers, Marvel Legends, DC Multiverse, etc. those are all toy lines that are really adult focused (transformers slightly less so).
 
B-b-but it comes out to 10 cents a brick which is actually a really great value for this *insert Licensed Property* set! /LegoGAF

If my kid asks for LEGO it's a big "NOPE" from both of us, which is a shame. Just way too much money for some of these sets. If he's really got his heart set on one particular set we'll just go to AliExpress and buy the LEPIN version for 1/4th the price.

But you don't understand, it cost millions upon millions of design hours and a billion dollars to redesign the Millennium Falcon to have three different pieces and a dome since the last time they designed it. You're taking avocado toast right out of these poor peoples mouths.

Lepin for life.
 
The toys are high quality, and I still love Lego now as much as I did when I was 5-10 (I'm 30). It's always been expensive, but the toys last and there's endless creative potential in them. My 5 and 7 year old nieces are already obsessed with them. That said, it seems their licensing has gotten out of hand (the superhero sets especially are underwhelming; Star Wars ones are quite good). The sheer number of SKUs they have is ridiculous though and leads to a lot of bloat, and like someone mentioned earlier; enough with the damn police stations and fire stations.
 
But you don't understand, it cost millions upon millions of design hours and a billion dollars to redesign the Millennium Falcon to have three different pieces and a dome since the last time they designed it. You're taking avocado toast right out of these poor peoples mouths.

Lepin for life.

It is a lot more complicated than that.
 
So, continuous growth for 13 years straight. Sales drop one year, and it's time to cut jobs and reset the company?
 
I mean if you have kids, look at the ROI (in terms of hours of entertainment) of the average $60 video game vs a lego set of equal or greater value. Not hard to figure out where to spend your money.
 
Not surprised, they've been doing insanely well the past few years and I'm surprised sales kept going up and up until now.

As far as pricing goes, there are lots of deals to be had and Lego's always been expensive, relatively speaking.

Yeah, it's more market saturation at this point than anything else. It's not the type of thing that should grow forever.
 
You can save money by buying knockoff clothes, shoes, bootleg game carts and downloading roms too. Doesnt make it right and you are robbing the designers of their compensation.

I had no idea LEGO paid their designers a royalty on top of their salary. That's a really amazing, progressive move. I also agree the creatives behind stuff should receive the primary benefit, not the bazillion dollar companies they work for.
 
Yeah, prices are too high. Its a shame because they've had some cool sets especially that girls' friends line.
 
I mean if you have kids, look at the ROI (in terms of hours of entertainment) of the average $60 video game vs a lego set of equal or greater value. Not hard to figure out where to spend your money.

If the kids are under the age of 10, LEGO. My kids spent hundreds upon hundreds of hours playing with bricks.

Now that they are a teen and preteen they game a lot but every once in a while they do break out the bricks.
 
Just for your information:

The recently released Lego Ninjago Ship has ~2300 pieces and currently costs 120€ (160 MSRP) in Germany.
Ninjago City comes with ~4800 parts and costs 300€. Those two sets have a very good value.
Then comes the Lego City Square for example. 1700 parts at 170€. Ok. Thats expensive.
HOWEVER, Kylo Rens new fucking Tie fucker fighter spaceship from The Last Jedi has 630 parts, and costs 80€. And that's fucked up.
They need to fix those price differences and make most of the sets cheaper overall.
 
I had no idea LEGO paid their designers a royalty on top of their salary. That's a really amazing, progressive move. I also agree the creatives behind stuff should receive the primary benefit, not the bazillion dollar companies they work for.

So we pro knockoff products now? How are buying knockoff products paying the original designers of the products at Lego?And actually the Ideas product creators do get royalties, soooo.
 
Secondhand retired sets are way worse than Lego's prices. As someone who has just started looking into modular buildings, Lepin looks pretty damn attractive - $60-$80 for the older buildings as opposed to several hundred for the Lego ones. Hard to justify spending twice as much or more on an older set that's apparently a lot less nice and less detailed than the newer ones.
 
They could charge $1000 for those Star Wars Ultimate Collector's Series sets and they'd sell. They're Star Wars products, and they're semi-limited premium collector's items anyway. The concerns are going to be with the prices of their lower and mid-range licensed products, as well as underperforming licenses in general (I'm sure Ghostbusters, 2016 and OG, did not help at all). The bottom falling through on non-amiibo TTL and Lego joining in last and staying the longest made it worse. Wouldn't be shocked if they also over-produced the Lego Batman Movie line, which was likely hurt by the movie underperforming and the line itself not differentiating itself enough from the normal DC line to justify its existence (and an inherently shorter shelf-life being tied to a specific movie).

The real problem though is that it's 2017 and we still don't have OG Jurassic Park Lego sets and have repeatedly shut down some amazing Lego Ideas JP submissions.

WHERE'S MY LEGO DR. ALAN GRANT.
 
Just for your information:

The recently released Lego Ninjago Ship has ~2300 pieces and currently costs 120€ (160 MSRP) in Germany.
Ninjago City comes with ~4800 parts and costs 300€. Those two sets have a very good value.
Then comes the Lego City Square for example. 1700 parts at 170€. Ok. Thats expensive.
HOWEVER, Kylo Rens new fucking Tie fucker fighter spaceship from The Last Jedi has 630 parts, and costs 80€. And that's fucked up.
They need to fix those price differences and make most of the sets cheaper overall.

Star Wars tax. It's why the Death Star is like $500 USD and sets in similar size like Ninjago City are 1/2 the price.
 
Did Bionicle die again?

Been dead for a year+, lol. AFAIK it didn't sell at all. They overcorrected the issue with the first gen's story bloat by paring back the story/media to almost nothing, so that probably played a part.
 
make Lego mini line that is cheaper and half the size of normal lego brick. I like Lego, but all the cool big set took so much space I ran out of shelves to put them.
 
So, continuous growth for 13 years straight. Sales drop one year, and it's time to cut jobs and reset the company?

Anytime a company stops growing is an excuse to restructure I suppose.

The prices should be lower across the board, but I highly doubt that will happen if revenue is lower. They probably need to branch out into other types of businesses like hotels and restaurants and stuff. They've pretty much maximised people's need to spend money on just pure lego pieces. It just becomes harder and harder to justify more and more higher priced sets after a while.

Some of the bigger sets are just way too much. I thought Assembly Square was way out of budget and waited for a 25% off sale to get it. Now its literally nothing compared to the MF (which I won't be getting anyway). I know price per piece is perfectly fine for the MF, but the overall cost is just way too much. Luckily I don't get the Star Wars sets, but I'm hoping the next Modular building go back to pricing like the Parisian Restaurant/Detective's Office.
 
Did Bionicle die again?

The reboot bombed so badly that LEGO decided year 2 would be its final year before the second wave of year 1 hit store shelves. The second wave of year 2 was exclusive to Toys R Us in the US and didn't release at all in some countries. Nothing has replaced it.
 
make Lego mini line that is cheaper and half the size of normal lego brick. I like Lego, but all the cool big set took so much space I ran out of shelves to put them.

This is my problem. I'd buy more of the small-mid-range sets, but it feels like too much of their mid-range sets consists of diorama-style sets that take up a disproportionate amount of space and are difficult to easily move around. I really liked the Rey's Speeder set, because it's literally just a toy when it's all said and done, and a small, compact one at that:

 
So we pro knockoff products now? How are buying knockoff products paying the original designers of the products at Lego?And actually the Ideas product creators do get royalties, soooo.

I'm fine wearing no name clothes and eating grocery store brand food, Payless sneakers and my Chinese smartphone. I sure as hell can buy my little colored bricks from a knockoff source too.
 
I'm fine wearing no name clothes and eating grocery store brand food, Payless sneakers and my Chinese smartphone. I sure as hell can buy my little colored bricks from a knockoff source too.

The no name clothing and payless sneakers are still their own designs and brand though. Buying a LEPIN set is like buying one of those 50 games in one game consoles from a mall kiosk since the SNES classic is too expensive (if you can find one that is). It is someone profiting off of someone else's work and design without paying them for it.
 
I doubt they needed this. I remember hearing them having record profits last time they posted profits

Basically LEGO's insane turn around means they hired too many people too quickly. This is cutting the fat, so to speak. Also LEGO has been incredible good at making users market their products for them. Which is great for the business, but also means a lot of jobs might not be as needed as they thought.
 
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