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.”
PREVIOUSLY: How Funko pops out a POP! Inside the process of creating collectible figures, from idea to product
“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.
Funko, which went public in 2017, opened its first retail location inside its Everett headquarters that same year. Last fall, the company opened a second, 40,000-square-foot retail location in Hollywood, Calif.
The company is best known for its POP! figurines based on numerous characters from across the pop culture landscape including movies, television, comics, video games, sports and more.
