Layoffs at LeapFrog
By Staff -- Playthings, 1/28/2008 7:26:00 AM
EMERYVILLE, Calif.—LeapFrog Enterprises Inc. said on Friday that it would eliminate 85 jobs by mid-April as the electronic learning aid maker seeks to return to profitability.
On January 25, the first 20 of the 85 people it plans to pare from its employee rolls were let go, LeapFrog announced.
“Consistent with our plan, we are reducing our work force by approximately 85 employees between now and mid April," the company said in a statement. "Given the current business climate, we believe that now is the best time to implement this decision and to notify the impacted employees."
The company employs approximately 960 people overall.
In its most recently reported quarter, the third quarter of 2007, LeapFrog shrank its net loss to $2.8 million, down from a loss of more than $49 million in the corresponding quarter of 2006, although sales during 2007’s Q3 were down $40.7 million from the year-ago period. Its operating losses fell to $3.1 million for the third quarter 2007 compared to a loss from operations of $14.7 million for the third quarter 2006.
Last fall, LeapFrog president and CEO Jeffrey G. Katz said, "Our third quarter sales were weaker than expected as we entered the 2007 holiday selling season, driven by the performance of our legacy products. However, we're encouraged by the good results from several of our new products and our Leapster handheld business continues to perform very well. With the launch of our 2008 product line, we expect to see the business grow in 2008 and beyond."
