Funko, the company known for its tiny toys, will be getting smaller.
In an SEC filing Friday, the company, perhaps most famous for its line of blank, featureless Funko Pop figures and subsidiaries like Loungefly (known for their small backpacks) and Mondo (which Funko significantly gutted earlier this year), announced it will lay off between 180–200 employees, totaling between 12% and 13% of its workforce.
The company is expected to incur charges of up to $2.8 million associated with the layoffs. Additionally, it will result in $20 million to $22 million of annualized cash savings.
“This action is part of the company’s initiatives to rebalance its cost structure into prioritized areas that the company believes will drive long-term growth and improve margins,” the filing read. “As the company focuses on these goals, it is consolidating functions and eliminating or reducing investment in areas of lower focus.”
Additionally, the filing read: “The company may incur additional expenses not currently contemplated due to events associated with the reduction in force. The charges that the company expects to incur in connection with the reduction in force and annualized run rate cash savings are estimates and subject to a number of assumptions, and actual results may differ materially.”
Last week, Funko had a huge presence at San Diego Comic Con, where they set up “Funkoville” — a large, immersive neighborhood with shops devoted to their different brands and licenses, including Marvel, Harry Potter and DC.
When they purchased Mondo from Drafthouse, Funko looked to move into a more prestige market, but they gutted the company earlier this year, with some of the remaining players taking off earlier this month. (The Mondo Records department was particularly decimated.)
It reamins unclear what departments will be impacted by this new round of layoffs.
