What’s Happening at Spin Master?
Spin Master, the Toronto-based toy and entertainment giant behind PAW Patrol, Hatchimals, and Gabby’s Dollhouse, has officially confirmed layoffs across the company.
- The announcement came June 3 as the company tries to weather mounting global tariffs, particularly from the U.S. on Chinese imports
- Multiple impacted employees have contacted Samfiru Tumarkin LLP seeking legal advice and severance package reviews
In an emailed statement to The Canadian Press, company spokesperson Tammy Smitham said:
“The layoffs were one part of a multi-pronged plan to deal with the effect of tariffs.”
No specific number of affected employees has been disclosed.
Official Statements and Context
Spin Master recently reported a US$24.5 million loss in Q1 2025, withdrawing its full-year financial outlook due to “meaningful uncertainty” caused by the ongoing tariff landscape.
CEO Max Rangel:
“We are withdrawing our 2025 guidance,” citing the unpredictability of US duties and their impact on the company’s operations.
CFO Mark Segal:
“In the 125 to 145 (per cent) range [for duties]… it becomes very difficult” to plan and forecast.
CFO Mark
Strategic Shifts
Supply Chain Diversification:
- Spin Master plans to produce 70% of toys for the U.S. market outside China by the end of 2025, increasing to 75–80% by 2026
- This shift aligns with the broader toy industry response to U.S. duties on Chinese manufacturing
Cost Management:
- The company is exploring different shipping methods to offset the impacts of US duties
- Price increases are also being considered, as Spin Master acknowledges that not all costs can be absorbed internally.
Next Steps for Spin Master Employees
If you’re affected by the workforce reduction at Spin Master, understanding your legal rights is crucial.
Non-unionized employees in Canada’s retail sector are entitled to severance pay based on a variety of factors, including their role, tenure, age, and ability to find similar work.
ℹ️ Want a quick overview on severance pay? Watch the video below or check out the full episode in our TV section.
Here’s What You Need to Know
- Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
- Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
- Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.
Lost Your Job? Contact Us
If you’ve lost your job at Spin Master for any reason, the experienced employment law team at Samfiru Tumarkin LLP can help.
Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.
Call us today at 1-855-821-5900 or request a consultation online.
⛔ UNIONIZED?
You must consult your union representative regarding termination, severance pay, and other workplace issues. These matters are governed by your collective bargaining agreement. By law, employment lawyers can’t represent unionized employees with these issues.
