Hasbro to Cut 900 More Jobs, Total Layoffs Reach 1,900, Amid Market Challenges

Date: December 11, 2023

Hasbro, the renowned toymaker, is set to cut an additional 900 jobs globally, marking a somber turn of events for the company already grappling with a difficult year. This announcement comes nearly a year after the initial revelation that Hasbro would reduce its workforce by 15%, amounting to 1,000 full-time positions.

CEO Chris Cocks addressed the employees in an internal memo shared with Forbes, acknowledging that the anticipated market challenges have proven to be more formidable and enduring than initially planned. The company had already implemented 800 job cuts earlier in the year, and with the latest announcement, the total layoffs now stand at 1,900, constituting 29% of its workforce.

In a regulatory filing, it was revealed that Hasbro employed approximately 6,490 people worldwide at the end of 2022. The majority of the newly announced job cuts will take place over the next six months, with the remaining balance occurring over the following year.

Hasbro, known for iconic brands like “Transformers” and Monopoly, has been adversely affected by persistently high inflation rates worldwide. Consumers’ struggles to cope with rising prices have led to cutbacks in discretionary spending, impacting toy sales. The company had warned in October, along with competitor Mattel, about a lackluster holiday season and observed consumers adopting more frugal spending habits.

CEO Chris Cocks highlighted that the challenges experienced in the first nine months of the year have extended into the holiday season and are likely to persist into 2024. To address these difficulties, Hasbro also announced plans to exit its underutilized Providence, Rhode Island office by January 2025.

In response to these market headwinds, Hasbro now expects to achieve gross annual run-rate cost savings ranging from $350 million to $400 million by the end of 2025, an increase from the previous estimate of $250 million to $300 million.

The news took a toll on Hasbro’s shares, which dropped about 6% in extended trading, reflecting the severity of the situation. Competitor Mattel also experienced a slip of more than 1%.

Hasbro’s proactive measures, while necessary for navigating challenging market conditions, underscore the broader economic challenges facing the toy industry and the broader retail sector as they grapple with changing consumer behaviors and economic uncertainties.