10 layoffs at American Girl

Middleton-based American Girl announced Tuesday another round of layoffs, although smaller than the last round.

The firm, a fully-owned subsidiary of the Mattel Corp., is laying off 10 people at its Middleton location and one at its call center in Wilmot.

American Girl spokeswoman Julie Parks says the reductions are part of an ongoing move by Mattel to reduce costs. She says the world’s largest toy maker is facing rising prices for its raw materials, mainly petroleum used in plastics manufacturing.

Also, the company is facing the end of a job sharing agreement with John Deere Financial. The two companies had shared 22 office staff members on a seasonal basis but are dissolving that 12-year arrangement.

Parks says American Girl has 120 days to make a decision on that issue. Some American Girl employees may qualify for a buyout or find another position within the company.

Mattel makes Barbie and Fisher Price products. It is headquartered in El Segundo, Calif.

Mattel purchased American Girl in 1998 from founder Pleasant Rowland. Mattel is now headed by Bob Eckert, a former Madison resident who had been CEO at Kraft Foods and from 1993 to 1995 was president of Oscar Mayer.

American Girl counts 808 full and part time employees in Wisconsin and 1,134 at its dozen retail stores in major U.S. cities.

The company is also reducing staff at its Los Angeles retail operation but is adding to new locations for American Girl store, Seattle and Washington, D.C.

In November 2008, American Girl cut 31 positions or about 5 percent of its workforce in Middleton. That was part of more than 1,000 layoffs company-wide by Mattel that year.

From: Host Madison