The toymaker made the announcement alongside its half-year results, which revealed a five per cent drop in revenue to 14.9 billion Danish krone (£1.8bn).
"Our colleagues put so much passion into their work every day and we are deeply grateful for that".
The company moved its Lego Education headquarters from Kansas to Boston previous year, adding 75 jobs to the area.
Lego has moved into video games, movie franchises, robotics and smartphone applications to build up sales but revenue growth slowed from 25% in 2015 to just 6% previous year. In established markets such as the United States and in parts of Europe revenue declined, while in a growing market, such as China, revenue grew by double digit. "Unfortunately, it is eesential for us to make these tough decisions".
Commenting on the financial report, LEGO Group Chairman Jørgen Vig Knudstorp claimed that the company has already taken steps to change the situation for the better.
He would seek a return to a leaner and more efficient organisation to respond to "losing momentum. which we think could ultimately lead to stagnation or even decline".
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After years of surging sales, the company that makes Lego is laying off employees.
Last month Lego said Niels Christiansen, a Dane, would replace Briton Bali Padda as chief executive.
"This means we will build a smaller and less complex organisation than we have today, which will simplify our business model in order to reach more children". More children use mobile devices for entertainment, leaving Lego to battle not just its traditional rivals like Mattel Inc and Hasbro Inc.
The Billund, Denmark based toy maker said half-year sales fell 5% from the year-ago period, after a big marketing push to bolster growth in large but mature markets like the USA failed to bear fruit.
He said the restructuring will impact costs as it works to clean-up inventories across the entire value chain.
Lego now employs 18,200 people but that number is set to go down.