The bankruptcy of its biggest customer, Toys 'R' US, really hit the Barbie-maker hard, losing it 10% of its sales in the second quarter.
This coupled with sluggish sales of its brands like Fisher-Price and Hot Wheels, as youngsters opt for electronic alternatives, has compounded problems.
Now the company has announced that 2,200 jobs are to be cut, or 22% of the global non-manufacturing workforce, as part of its cost-savings plan unveiled last October aimed at saving US$650mln over two years. The vast majority of the job cuts are back-office and support roles, according to the company.
The bottom line in the three months to end June was an increased net loss to US$240.9mln, or US$0.70 per share, from US$56.1mln, or US$0.16 per share, a year earlier.
That was on sales, which fell 13.7% in the quarter to US$840.7mln, which was less than the US$851.8mln, which analysts had expected.
Mattel CEO Ynon Kreiz reportedly said on a conference call that he hopes the company can realign resources toward high-performing toys, improving online sales and developing better toy franchises for the future.
"We see a lot of opportunities, but there has been a big discrepancy between our financial performance over the last few years and where the company should be," he said.
Shares fell 6.4% to US$15.25 in New York.