Hasbro is implementing workforce reductions, laying off approximately 1,100 employees globally, as the toy maker grapples with soft sales that have extended into the holiday shopping season. The decision comes in response to changing market demand, particularly in the toys sector, where the market is transitioning from historic, pandemic-driven highs. Hasbro had already warned of challenges in the first three quarters of the year, citing headwinds that have persisted into the holiday season and are likely to continue into 2024.
The reduction in workforce is part of Hasbro’s broader strategic transformation to modernize the organization and enhance profitability. The company aims to create a solid foundation for growth by making the organization leaner and more efficient. While the majority of notifications will occur over the next six months, some functional areas will be more affected than others. The company is offering comprehensive packages, including job placement support, to employees affected by the layoffs.
The decision comes after Hasbro previously laid off hundreds of employees earlier in the year and adjusted its full-year outlook, projecting a 13% to 15% revenue decline for the year. The toy maker’s sales have been impacted, with popular brands like My Little Pony, Nerf, and Transformers experiencing an 18% decline due to softer category trends.
CEO Chris Cocks emphasized that cost-cutting is not a long-term strategy for Hasbro. The company will continue to invest in areas such as new systems, insights and analytics, product development, and digital initiatives. As part of the cost-saving measures, Hasbro is exploring options to reduce its global real estate footprint, including exiting the Providence, Rhode Island office at the end of the lease term in January 2025.
The layoffs are challenging for employees directly affected, and Hasbro is committed to supporting them through the transition. The company aims to return its business to growth and carry out its mission despite the current difficulties.