Collectibles and toy company Funko Games has shared some bad news with its employees. On Friday last week, the company disclosed in a US Securities and Exchange Commission (SEC) filing that it would be reducing its workforce by about 12-13%, meaning that 180-200 team members will be impacted.
The move is part of Funko’s cost-trimming strategy, which will result in an upfront payment of $2.8 million, but will, the company estimates, help it save between $20 million and $22 million annually. Funko is undergoing restructuring which is focused on areas of the company’s product list where it believes it can drive long-term and sustainable growth and increase margins.
Lower focus areas, as the company’s filing puts it, are not its immediate priority. This is of course not good news for the people who have been with Funko Games for a while now, but it’s not entirely unexpected. Funko already hinted that more layoffs may be coming as the company cut 150 people free in 2022 and has decided to scale down its collectible poster business, Mondo, which it bought in 2021 for $14 million.
The sudden change of heart meant that for many of the employees, there was nothing else to do. Funko Games is probably best known for its Funko Bobbleheads figures that draw inspiration from popular culture and are the result of IP collaborations.
The company has similarly worked on a number of board games and has released a number of worthwhile if somewhat lighter game in its time. Some of the company’s most successful tabletop games include Rear Window, The Goonies: Never Say Die, the 1994 classic Big Boss, Last Defense!, and many others.
Just like other companies, Funko Games has been expanding too rapidly leaving some areas to try and grow inertly, but as the market opens up and the pandemic spending spree is slowing down, companies are realizing that they need to make a concentrated effort to grow.