The firm said it will streamline its design, product development and marketing operations.
However, the UK operation will not be affected by the reorganisation plans.
"It does not affect Brio UK at all," said UK MD Paul Sirett (pictured). "The UK operation has actually achieved significant cost savings already over the last couple of years, streamlined our team here, moved offices and importantly grown sales through range extensions into prechool toys and Nursery - so we are a little 'ahead of the game', if you like.
"We are, however, always restless for new ways to market so hope to continually adapt our UK operation to maximise the Brio brand in UK.
"This is principally about maximising efficiency in some Brio central functions and taking the strengths and knowledge in product development and supply that we have across the wider toy industry in our Scanditoy (Nordic) toy distribution business and applying them to our Brio Toy business.
"In summary, it is simply continued good housekeeping for continuous improvement."
Hakan Johansson, acting CEO of Brio, added: "Brio's in-house developed toys, prams and child safety seats for cars have shown good growth, which is positive for our margins. Unfortunately our total sales have been weaker than expected and we calculate that the downturn in the global economy will mean further challenges. Therefore we must reduce costs in our efforts to achieve profitability."
The reorganisation will cost some SEK41m (£3.3m), but is expected to result in annual savings of SEK40m (£3.2m), the firm said in a statement.
The company has 400 employees and reported a net turnover of SEK930.1m (£75.4m) in 2007.