Toy giant Hasbro, renowned for iconic brands like Monopoly, Play-Doh, and Transformers, is set to lay off 1,100 employees, nearly a fifth of its workforce, just weeks before the holiday season.
The decision comes as the company faces ongoing challenges, with lackluster sales persisting into the crucial holiday trading season.
Latest Job Cuts Mark 20% Workforce Reduction for the Company
This latest round of job cuts follows a previous reduction of 800 jobs earlier this year, bringing the total workforce reduction to almost 20%. Hasbro’s struggles have been reflected in its stock performance, with shares falling over 21% this year, in stark contrast to rival Mattel, which experienced a nearly 6% increase in its stock value.
Chris Cooks, CEO of Hasbro, described the layoffs as a “last resort” and emphasized that they were necessary to ensure the company’s overall health. In an email to staff, Cooks acknowledged the difficulty of the decision, especially given the timing, just before the holiday season.
He stated, “While we’re confident in the future of Hasbro, the current environment demands that we do more, even if these choices are some of the hardest we have to make.” Cooks outlined the challenges faced by the company throughout 2023, with a continuation of these “headwinds” expected into 2024.
Despite anticipating a year of change and implementing updates to leadership, structure, and operations, Hasbro struggled with a slowdown in sales, particularly in the toy market, following historic pandemic-driven highs.
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Hasbro’s Workforce Cuts Amid Economic Uncertainties
The contrasting fortunes of Hasbro and Mattel are evident in Mattel’s success, buoyed by the blockbuster release of Barbie. While Mattel’s shares have seen a nearly 6% rise, Hasbro has grappled with the aftermath of the pandemic’s impact on toy sales.
“We entered 2023 expecting a year of change, including significant updates to our leadership team, structure, and scope of operations,” Cooks explained. “
While we have made some important progress across our organization, the headwinds we saw through the first nine months of the year have continued into the holiday and are likely to persist into 2024.”
As the toy industry navigates through these challenging times, the impact of Hasbro’s layoffs on its workforce, especially during the holiday season, underscores the broader economic challenges and uncertainties facing businesses in the current market landscape.
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