Hasbro, the maker of popular toys such as Monopoly, Play-Doh, and My Little Pony, has announced a significant cut to its workforce. The Rhode Island-based company disclosed in a memo to employees that it will be cutting about 1,100 jobs, which accounts for 20% of its workforce. This announcement comes as the toy business continues to face challenges, resulting in a slowdown in sales and the need for cost-saving measures.
In addition to the 1,100 job cuts, Hasbro had already implemented 800 layoffs in 2023 as part of a plan to save up to $300 million annually by 2025. The company currently has 6,490 employees on its payroll. Hasbro, like many other toy companies, saw a surge in sales during the pandemic as parents purchased toys to keep their children entertained during lockdowns. However, sales have slowed down, and toy companies have had to reduce prices to manage excess inventory.
The company’s CEO, Chris Cocks, acknowledged the challenges facing the business, stating that market headwinds have proven to be stronger and more persistent than anticipated. In response to these challenges, Hasbro plans to focus on fewer, bigger brands, gaming, digital, and its direct-to-consumer and licensing businesses.
The news of the layoffs caused Hasbro’s stock to drop by almost 6% in after-market trading. The company’s ongoing struggles reflect broader industry trends, with toy sales in the U.S. down 8% from January through August. As the toy business continues to face challenges, Hasbro and other companies in the industry will have to navigate a difficult market landscape in the coming year.
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