Funko’s CFO clarified details about the recent layoffs at Mondo, revealing that the business’ poster runs would continue and expand its print numbers with a broader scope.
Mondo tweeted out a letter from Funko CEO Brian Mariotti, explaining the plans for the company. Namely, Mariotti wanted to clear up some “misinformation” about the Mondo layoffs and the company’s future. He began by revealing that Funko had not laid off most of Mondo’s staff, stating that employees with the poster makers only accounted for about 10% of the firings. Then, he addressed the claims that the poster side of the business had been axed. “The Mondo posters will continue, period,” he stated, “We feel that making extremely limited runs of posters, most of which are 150 pieces or under, limits access to fans unfairly. Many of these posters are bought with the sole purpose of flipping them at a much higher cost to fans that really want them.”
Funko Plans to Expand Mondo’s Line
Mariotti revealed that Mondo would also expand its line, both in the number of prints and the scope of its content. “Our goal is to make larger edition size runs (limited but not ultra-limited) that allows more fans to participate in this world-class expression of art,” he stated, noting that the content would now include TV, anime, sports and music. Additionally, Funko wants to grow Mondo’s vinyl works, planning a massive 70,000-square-foot factory for making them, on top of hosting live music events and selling records in San Diego. On top of that, 4,000 sq ft of that space will be dedicated to housing a Mondo art exhibit.
As part of this expansion, Mariotti stated that the company was in the process of acquiring licensing to major pop culture IPs to expand on Mondo’s collectibles division. According to Mariotti, several of these licenses are ones that are only financially feasible since Funko purchased Mondo in 2022. The Funko CEO ended the letter by promising fans that the company would continue to support Mondo and its products.
Funko Destroys $30 Million in Products
Earlier in March 2023, the company announced plans to destroy $30 million in unsold Funko products due to extensive inventory and a massive downturn in profitability. Mariotti announced the decision, revealing it stemmed from the company’s poor 2022 performance that saw it lose $50 million, a 180% dip from its $17.4 million profits the year prior. At that time, Mariotti revealed plans to cut 10% of its workforce to cut costs.
Funko blamed much of the issue on its new warehouse in Buckeye, AZ. Reportedly, the overstock of Funko products at the Arizona distribution center led to exorbitant rental costs to store the overflow. Those costs soared during Q4, leading to the company’s current predicament.
Source: Twitter
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