Despite a strong 4th quarter in 2019, COVID-19 has hit hard at Funko resulting in having to lay-off 250 employees, a quarter of their workforce.
Funko, the Everett, Wash.-based makers of pop culture figurines and other merchandise, is cutting its workforce by about 250 employees.
According to a regulatory filing with the Securities and Exchange Commission on Wednesday, Funko reported that the reduction in about 25 percent of its global workforce was aimed at reducing costs and preserving liquidity “in response to the uncertainty of the COVID-19 pandemic.”
At the end of the first quarter in March, Funko said it had experienced “rapid growth over the last several years,” which placed a strain on the company’s “managerial, operational, product design and development, sales and marketing, administrative and financial infrastructure.”
The company said at the time that its total number of full-time employees went from 66 on Dec. 31, 2013, to 1,077 as of March 31, 2020.
The Seattle Times reported that Funko announced in April that it was furloughing a “significant portion” of its employees due to the coronavirus and that top management would take a 20 percent pay cut through the end of June.
According to its filing this week, the majority of the layoffs are expected to occur by the end of June and the remainder by the end of September. The company also expects to incur approximately $1 million in charges related to “certain termination benefits.”
“Today, we announced organizational restructuring in response to the unprecedented and uncertain times we are all experiencing,” Funko said in a statement provided to GeekWire. “These difficult decisions will allow Funko to continue to serve our fans, customers and partners.”
The company would not specify how many of the job losses would be in Everett or whether its retail locations would be affected beyond the closures caused by the health crisis.
It is not yet known where these lay offs will occur, in the US or Europe, and we will share more information when we get it. We wish all those being laid off well, and hope they are able to find new employment soon.