Hasbro is undergoing significant workforce reductions, laying off approximately 1,100 employees, as reported in an internal company memo obtained by CNBC. The decision stems from the toy maker’s challenges with soft sales that have extended into the holiday shopping season. Hasbro, which employed around 6,300 people earlier this year, had already issued warnings in October about the anticipated difficulties.
In the memo, CEO Chris Cocks acknowledged the persistence of market headwinds, particularly in the toy sector, which has not fully recovered from the historic highs driven by the pandemic. The company had earlier cut its full-year revenue outlook, citing a 13% to 15% decline. Notably, popular toy brands like My Little Pony, Nerf, and Transformers experienced an 18% drop in sales.
This latest round of layoffs follows previous workforce reductions earlier in the year. Cocks emphasized the company’s commitment to its strategy of focusing on fewer, bigger, and better brands. Despite some positive transformations, the challenging market conditions necessitated additional measures. The memo outlined the company’s plan to modernize and streamline its organization, with the majority of notifications expected over the next six months.
To position Hasbro for growth, the company aims to strengthen its foundation and ensure profitability. While acknowledging the difficulty of the news, especially during the holiday season, Cocks emphasized the provision of comprehensive packages, including job placement support, for affected employees. The company is also exploring cost-saving measures such as exiting unused office space in Providence, Rhode Island, by January 2025.
Looking ahead, Hasbro intends to continue its growth and investment in various areas, including new systems, insights, analytics, product development, and digital initiatives. Despite the challenges, the company remains focused on returning to growth and carrying out its mission in the evolving toy market.