Toys ‘R’ Us laid off 10-15% of its corporate workforce just before Toy Fair, according to the Wall Street Journal.  The layoffs amounted to around 250 employees from its corporate (i.e., non-store) staff.  The staff reductions came in the wake of a holiday season in which Toys 'R' Us same store sales fell 2.5% in the U.S. and 4.9% overseas. 

Those U.S. declines came in the context of an overall toy and game business that grew 5% in 2016, according to NPD figures (see “Collectibles, Games Led Toy Business Growth in 2016”).  The likely explanation is continued migration of sales online, which also affected other chain retailers, including Barnes & Noble (see “Barnes & Noble Holiday Sales Plummet”), Gamestop, and FYE (see “Gamestop, FYI Report Sharp Holiday Sales Declines”).

Of course, Toys ‘R’ Us has some problems specific to the chain, such as the embezzlement case it completed last year (see “Former Toys ‘R’ Us Transportation Director Guilty of Embezzlement”).