2023-12-11 23:55:00
Hasbro is cutting regarding 20% of its staffblaming the decline in toy and game sales during the crucial Christmas shopping season.
The maker of the Dungeons & Dragons and Transformers franchises will cut around 1,100 jobs over the next 18 to 24 months.including 200 pending from a previous round of cuts, CEO Chris Cocks said Monday in a memo to employees.
“The market headwinds we anticipated have proven to be stronger and more persistent than anticipated,” the executive said. The cuts are expected to result in annual savings of $100 million. Management anticipates regarding $134 million in related costs, such as severance pay.
The company’s shares fell 8.7% to US$ 44.65 this Monday in off-road tradingbefore partially recovering.
Sales in decline
Hasbro has struggled to shake off the pandemic hangover. Parents stocked up on toys while the kids were home, but have since scaled back their purchases. Analysts expect to see a 19% year-over-year decline in sales this quarter.
Hasbro has also announced that will not renew the lease of an office building in Providence (Rhode Island) in January 2025 and will move its employees to its nearby headquarters in Pawtucket.
In October, Hasbro lowered its annual revenue forecast due to a weaker toy market heading into the holiday season. A spokesperson for the firm declined to provide further details. The Wall Street Journal reported these measures early Monday.
To address industry conditions, Hasbro and rival Mattel are trying to turn their toy businesses into entertainment properties by bringing popular brands such as Dungeons & Dragons and Barbie to the big screen.
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