Lego cuts back staff

TOY maker Lego will cut 1400 jobs, or about 8 per cent of its global workforce, after reporting a rare fall in sales and profit in the first half of the year.

The Danish group said overnight Tuesday it was preparing to “reset the company”, with a new chief executive due to take over next month.

He has the task of simplifying the privately owned business after years of high growth and expansion into new ventures such as film.

Revenue dropped 5 per cent to 14.9 billion kroner ($A3 billion) in the first six months of the year, mainly as a result of weakness in core markets such as the US and Europe.

Profit slipped 3 per cent to 3.4 billion kroner.

Lego has appointed Niels B. Christiansen, who headed thermostat-maker Danfoss for nine years, as its new chief executive.