EVERETT — In a bid to cut costs, Funko, the Everett-based toymaker, plans to trim its workforce and operate like a “lean startup.”
The toymaker plans to reduce its staff by about 12% and eliminate 180 to 200 positions, according to documents filed with the Securities & Exchange Commission.
The company has offices, retail stores and warehouses in Washington, California and Arizona.
Funko did not respond to a request for details about the planned layoffs.
The company reported a loss of $73 million in its second quarter, according to a company filing.
On a per-share basis, Funko posted a loss of $1.54. Losses, adjusted for one-time gains and costs, were 43 cents per share.
Second quarter revenues totaled $240 million compared to $315 million a year ago.
The company expects those numbers to ramp up in the third quarter, reaching between $280 million and $310 million.
Funko, whose headquarters and flagship store are in downtown Everett, is known for its pop-culture-inspired vinyl figurines and collectibles.
However, some of those items might also be on the chopping block.
The company’s cost-cutting measures include whittling its product line and focusing on fewer items.
“We also have begun re-shaping the company to focus our energies and resources on Funko’s core products. To that end, we are implementing a strategic plan to reduce the number of product lines and complexity in our business,” interim Chief Executive Michael Lunsford said in a statement.
“Putting our fans and brand first, running the business like a lean startup and investing in areas where we can grow profitably will guide and inform every decision we make,” Lunsford added.
Sales of Funko’s vinyl dolls and collectibles surged during the pandemic. But the temporary run on Funko Pop! sales cooled, leaving the company with excess inventory.
Last year, Funko issued layoff notices to more than 250 employees at warehouses in Everett and Puyallup and consolidated its distribution operations to a Phoenix suburb.
The move prompted a Funko shareholder to cry foul and file a lawsuit in U.S. District Court that claimed the company didn’t tell shareholders that it was experiencing significant delays in the rollout of a critical distribution software program.
In a change of leadership last month, Lunsford was appointed interim CEO after Funko’s chief executive, Brian Mariotti, stepped down to take a leave of absence.
Mariotti and a small group of investors bought the company in 2005 from founder Mike Becker.
Mariotti expanded the firm’s portfolio of retro characters to include licensing deals for popular characters from comics, movies and TV shows.
Its signature line of Pop! vinyl figurines, with oversized heads, big eyes and little bodies, first appeared in 2010. In 2017, the company went public, trading on the Nasdaq under the symbol FNKO.
Funko shares are down 32% since the beginning of the year versus the S&P 500’s gain of 17.6%, according to Zacks Equity Research.
Janice Podsada: 425-339-3097; jpodsada@heraldnet.com;
Information from the Associated Press is included in this report.
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