Lego Group moving operations from USA to Mexico

Lego Group, makers of legendary iconic plastic building blocks have said that they are cutting 1,200 jobs at a time when kids prefer to play with electronic gadgets rather than building blocks.

The company is now planning to move their operations from United States to Mexico where the manufacturing costs are low.

Lego is going to close its U.S. manufacturing plant and lay off 300 people there in early 2007. In addition, as many as 900 employees in Denmark also will be sacked over the next three years.

Production of their toys would now take place in Mexico and this means that their distribution facility in Enfield will also be affected.

Electronics would now be taking over production of the basic Lego bricks and they would be taking over Lego’s factory in Kladno, in the Czech Republic.