The company, based in Middleton, Wisconsin, has seen a steady decrease in revenue over the past year.
Some major headwinds for the past several quarters,” spokeswoman Julie Parks said. “The measures today were part of American Girl’s ongoing efforts to truly control costs, align work force with demand, and improve efficiencies where and when we can.”
From September 2016 to 2017, sales revenue was down 30 percent, and nearly 50 million in earnings was lost during the first 9 months of 2017 compared to the first 9 months of 2016.
One issue could be the price of the doll. As it sits right now, the standard, 18-inch doll and book cost $115.
Though Parks pointed out competition from other companies and online entertainment as reasons for recent struggles.
This is the third time employees have been let go over the past four years. Over that stretch, 37 jobs in Wisconsin have been eliminated.
The company also announced it was shutting down a suburban store in St. Louis this February. This marks the first time a store has closed since the company began opening stores in 1998. Nineteen U.S. stores remain.