Funko is taking a number of steps in reaction to the coronavirus crisis, including cuts in incoming shipments to reflect reduced demand, the company announced.
In addition to cutting its orders for manufactured product, Funko is also cutting staff costs. “A significant portion of its employees” will be furloughed beginning in April 5, and the executive team and upper level management will take salary cuts.
Funko will also cut other operating expenses, and capital expenditures not related to product development.
Funko’s Q4 was a rough one, with a decline in sales, a big inventory writedown, and a loss for the quarter (see “Funko Reveals Poor Holiday Season”).
The company said it had nearly $100 million of cash and availability on its credit line as of March 31.