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Subject: 
Massive Layoffs At Lego (in Enfield, CT)
Newsgroups: 
lugnet.mediawatch, lugnet.general
Date: 
Tue, 20 Jun 2006 14:40:44 GMT
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http://www.journalinquirer.com/site/news.cfm?newsid=16811796&BRD=985&PAG=461&dept_id=161556&rfi=6

Excerpt follows:

Danish-based toy maker Lego Systems Inc. plans to lay off more than 44 percent
of its Enfield work force by early next year, and will close its Enfield
packaging operation, subcontracting all warehousing, packaging, and distribution
work to an international company based in Singapore, Lego officials said today.

Cuts at its headquarters in Denmark will be even larger, with 75 percent of the
1,200 employees there expected to lose their jobs by next year, the company
announced.

Lego also plans to sell all but two of its Enfield buildings, company officials
said.


...

Lego also announced today that it will maintain production of Lego Technic and
Bionicle parts at its headquarters in Billund, Denmark. But even there, "Lego
plans to gradually shift production of products to Flextronics' plants in
eastern Europe, in stages over the next three years, affecting up to 900 of the
1,200 current production jobs in Denmark," according to a statement from Lego
Group Chief Executive Officer Jorgen Vig Knudstorp.

In addition, Flextronics also will take over operations at the Lego factory in
the Czech Republic beginning August, Knudstorp said.

Lego ended all manufacturing at its Enfield plant in 2000, farming that work out
to its plants overseas, leaving only the North American headquarters corporate
functions in Enfield, along with the packing and distribution work that is now
to be ended as well.

Once the layoffs are completed next March, the Enfield work force will total
about 360, according to McNally.

...

Lego also expects to close its existing five distribution centers in Denmark,
Germany, and France by March 2007, he said. Those closings will mean an
additional 213 Lego job cuts, and will leave Lego with only one European
distribution center, in the Czech Republic



Message has 9 Replies:
  Re: Massive Layoffs At Lego (in Enfield, CT)
 
After I picked my jaw up off the floor, all I can say is WOW. Not quite what I expected. And it's making me rethink our 'LEGO only store/warehouse' since I can not see how this can do anything but make things even crazier. (18 years ago, 20-Jun-06, to lugnet.mediawatch, lugnet.general)
  Re: Massive Layoffs At Lego (in Enfield, CT)
 
(...) That's a big hit for Enfield, a town that enjoyed its close relationship with TLC. Enfield lost molding in 2000 and now is losing packaging. Soon there will be just two buildings left. I grew up in CT, about 13 miles north of "Erector Square" (...) (18 years ago, 20-Jun-06, to lugnet.mediawatch, lugnet.general, FTX)
  Re: Massive Layoffs At Lego (in Enfield, CT)
 
As of 9:59 am Pacific Time, this story is on Yahoo's front page. Paul Sinasohn LUGNET #115 (18 years ago, 20-Jun-06, to lugnet.mediawatch)
  Re: Massive Layoffs At Lego (in Enfield, CT)
 
I'm concerned about all the friends we have in Enfield - I hope they still have jobs with our favorite company... JohnG, GMLTC (18 years ago, 20-Jun-06, to lugnet.general)
  Re: Massive Layoffs At Lego (in Enfield, CT)
 
After nine years of working for an international company, I am still amazed that the "modern" answer to unfavorable business results is practically always job cuts. They don't seem to teach anything else in management classes anymore (did they (...) (18 years ago, 20-Jun-06, to lugnet.mediawatch, lugnet.general)
  The End of Lego (was: Massive Layoffs At Lego (in Enfield, CT))
 
(...) Read the news today, oh boy (sorry for such an obvious quote, I could'nt resist). Why is anyone suprised by this? Lego has stated for the last 2 years that this was going to happen. Here's the thing: I dont think this is the worse news you are (...) (18 years ago, 21-Jun-06, to lugnet.mediawatch, lugnet.general) ! 
  Re: Massive Layoffs At Lego (in Enfield, CT)
 
(...) Wow for me, too! 75%!! Good lord! I must confess I've not been following this development because frankly, I'm more interested in building. I guess what bothers me most is that Lego, like Pixar and many other companies and/or entities which (...) (18 years ago, 21-Jun-06, to lugnet.mediawatch, lugnet.general)
  Re: Massive Layoffs At Lego (in Enfield, CT)
 
(...) I blame Galidor. LFB (18 years ago, 22-Jun-06, to lugnet.mediawatch, lugnet.general)
  Re: Massive Layoffs At Lego (in Enfield, CT)
 
In China, as well as other third world countries, it's always easier to deal with those who ask for more pay, better working conditions, and more rights in general (witness Tiananmen Square). This method as of now, is politically unacceptable in the (...) (18 years ago, 23-Jun-06, to lugnet.mediawatch, lugnet.general, FTX)

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