Licensee says it expects majority of reduction will occur by the end of Q2 in new filing to Securities and Exchange Commission.
Funko is expecting to reduce its global workforce by approximately 25%, the licensee has confirmed in a filing to the Securities and Exchange Commission.
Made on Wednesday June 3, the company says that it anticipates that a majority of the workforce reduction will occur by the end of Q2 2020, with the remainder by the end of Q3 2020.
The reduction is being made as Funko continues with its efforts to reduce costs and preserve liquidity in response to the uncertainty of the COVID-19 pandemic.
As a result of the actions, Funko stated that it expects to incur approximately $1 million of charges related to certain termination benefits.
In April, Funko confirmed that it would be furloughing a significant portion of its employees, while it was also implementing salary reductions across the executive team, as well as members of upper level management.
In May, it reported its consolidated financial results for the first quarter ending March 31, 2020, with net sales decreasing 18% to $136.7 million (2019: $167.1 million). The year-over-year decline was primarily attributable to the weaker content line-up in the first quarter of 2020 compared to the year ago period, as well as impacts from COVID-19.
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