Danish toymaker Lego announced Tuesday it would cut eight percent of it's workforce and layoff 1,400 workers.
The layoffs come as the company reported its first sales drop in more than a decade. In the first half of 2017 the Lego had a five percent decline in revenue.
Lego has 18,200 workers worldwide. Most of the 1,400 layoffs should occur by the end of 2017.
Lego's Chairman says the revenue drop is not due to a changing retail landscape, but that the company has become "too complicated."
"This is a sort of one-off, big move that really relates to 'do we operate in a simple way or as simple way as we should' and it is, what we're announcing today, is the totality of the effort addressing that problem," Jorgen Vig Knudstorp, Lego Group chairman, told CNBC Tuesday.
"We're very focused on making a smaller and more simple organization and also do a cleanup of our inventory positions in some markets. So ultimately for us that has been the aim and we will conclude all of that within this year."