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Mattel Inc., El Segundo, CA, has sold the Learning Co., its educational software unit, to Gores Technology Group, Los Angeles, for little more than a percentage of any profits Gores may earn from sales of Learning Co. licensed products. No further details were disclosed.

Mattel bought the Learning Co. in May 1999 for $3.5 billion, in part to become a big player in direct marketing. Instead the unit drained the company's profits and forced Jill Barad to resign as chairman and chief operating officer after the company reported losses for four consecutive quarters. Mattel's president and chief financial officer, among other senior executives, also resigned.

Gores is a private equity buyout firm. It manages 22 technology companies around the world.

Half to three-fourths of the Learning Co.'s business came from direct marketing. Analysts claim that Mattel was losing up to $1 million a day with the unit, which is the second largest consumer software company in the world after Microsoft. Its properties include Myst, Pokemon, and Carmen San Diego.

After losing nearly $300 million dollars with the Learning Co., Mattel announced plans to sell in unit in April and hired Credit Suisse First Boston to handle the transaction. The toy company will take a $430 million after-tax loss from discontinued operations as a result of the deal.

In addition, Mattel will lay off 350 employees -- about 10% of its workforce in this country -- and take $250 million in charges over the next two and half years to further decrease costs and increase profits. Some $100 million of those charges will be realized this quarter. The company will also reduce its dividend to five cents a share to save $130 million a year.

Barad, however, received a $50 million severance package.