Playmobil will cease production of its figures in Germany at the end of June 2026. Manufacturing operations in Dietenhofen, Central Franconia, have already been at a standstill since June 22. The Horst Brandstätter Group is relocating production to Malta and the Czech Republic due to high labor, energy, and infrastructure costs. As a result, around 350 employees will lose their jobs. However, development, administration, sales, marketing, and logistics will remain in Germany.
Last German plant ceases operations
With the closure in Dietenhofen, the last German production site for the well-known toy figures is disappearing. The company had announced the closure in February, initially citing June 30 as the final date. In practice, however, operations ended sooner because stable production could no longer be maintained.
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A company spokesperson described the situation succinctly: “Production has come to a halt.” Going forward, the figures will be manufactured in Cheb, Czech Republic, and Hal Far, Malta; both locations remain part of the group’s production network. Additionally, the Lechuza planter brand will stay in Dietenhofen, while the traditional manufacturing of the figures is leaving Bavaria.
Playmobil shifts production amid falling sales
The decision follows a prolonged period of weak performance. The group generated revenue of €409 million in the 2024/2025 fiscal year, down from €449 million the previous year. Earnings also remained negative, although the company did not disclose the exact amount of the loss.
Playmobil is thus facing a problem that extends far beyond the toy industry. Labor-intensive manufacturing is losing ground in Germany as the costs of energy, personnel, and infrastructure rise persistently. While the group is retaining key central functions in Bavaria, the industrial production of the figures is moving abroad.
Social plan for employees offers limited mitigation of the impact
A social plan is in place for the employees, comprising severance payments, a transfer company, and training opportunities. The company also organized a multi-day job fair at the site, where more than 20 regional employers offered over 180 vacancies.
However, the IGBCE trade union criticized the way the closure was handled, accusing management of failing to involve the works council in a timely manner. Works council chairman Michael Ulbrich described the news as a “catastrophe.” For many families, this marks the end of a reliable industrial job in the region.
Fierce competition intensifies the restructuring process
A look at competitor Lego further highlights the widening gap between the two companies. The Danish group reported record figures for 2025 and outpaced the overall market. In contrast, Playmobil faces the simultaneous challenges of cutting costs, restructuring its sites, and reaching new customer segments. Consequently, the factory closure comes at a particularly sensitive time.
The group is now placing greater emphasis on licensing deals and well-known brand franchises. These include the DFB, the Bundesliga, Barbie, Monster High, and WWE. This strategy aims to generate new demand and broaden the brand’s appeal. However, it remains to be seen whether this can offset the loss of German manufacturing operations.
Author: Blackout News
Sources: BR24 (23.06.26) – K Zeitung (24.06.26) – Business Insider (23.06.26) – Marktspiegel (23.06.26) – Blue News (23.06.26)