Hasbro

History

2023

Reduction of 20% of employees due to losses

On December 11, 2023, the American manufacturer of games and toys Hasbro announced its intention to carry out a restructuring, during which the number of employees will decrease by about 20%. The decision to downsize is due to weak sales and a deteriorating market environment.

Hasbro CEO Chris Cocks announced the upcoming changes. The company, which produces products such as Transformers, Nerf, Play-Doh, Power Rangers, Dungeons & Dragons, Magic: The Gathering, has found itself in a difficult position, he said. Long-term growth requires structure optimization, including team reduction.

Hasbro announces intention to restructure

We expected that the first three quarters [2023] would be difficult, especially for the toy market, which saw almost maximum sales during the COVID-19 pandemic. While we have made some progress in improving our operations, the complexities remain. Today we are announcing additional staff cuts: our leadership has come to this difficult decision after much thought, "Cox states.

The layoffs will affect approximately 1,100 employees at Hasbro branches around the world. Earlier in 2023, the company cut about 800 workers. As of the end of 2022, Hasbro had a global workforce of 6,490.

Layoffs are not the only cost-cutting step Hasbro is taking: in August 2023, the company announced that it would sell its eOne film and television business to Lionsgate for about $500 million. Under the restructuring plan, Hasbro will also reduce the cost of renting space for office space. All these measures are expected to help improve the financial situation in the context of the crisis in the United States.^[1]

15% staff reduction after losses

In late January 2023, toymaker Hasbro announced a 15% staff cut. According to the company's management, this will significantly reduce costs and return the business to a competitive, leading position in the industry.

Hasbro announced the layoffs after it performed poorly in the fourth quarter and reported a 9% year-on-year decline in revenue for 2022.

Hasbro said in a press release that its Wizards of the Coast division, which publishes the popular board game Dungeons & Dragons, continues to perform well. However, the consumer goods division struggled during the holidays amid low demand for toys and clothing.

In late January 2023, toymaker Hasbro announced a 15% staff cut

Hasbro attributed the decision in January 2023 to low sales of its products over the holidays. Hasbro said in a statement that the cuts will affect about 1,000 employees. As part of the job cuts, Hasbro President and COO Eric Nyman will leave his post. Layoffs and other organizational changes are designed to save the company up to $300 million until 2025.

Hasbro CEO Chris Cox said the company is focused on fewer big brands, gaming, digital as well as Hasbro's fast-growing direct-to-consumer and licensing business. The company intends to implement transformational changes aimed at significantly reducing costs and increasing growth and profitability at Hasbro.

Layoffs at Hasbro could be a warning sign that consumers are slowing their spending after a prolonged period of red-hot inflation hit Americans' wallets. Consumer spending fell 0.2% in December 2022, beating analysts' estimates, according to U.S. Commerce Department data released Jan. 27, 2023.^[2]

Notes