Hasbro lays off 900 more employees amid declining toy sales

Hasbro layoffs 2023: Toymaker Hasbro announced another round of job cuts, slashing an additional 900 positions worldwide in response to persistently weak toy sales. This move comes on the heels of a prior announcement last year to reduce its workforce by 15%.

Hasbro Job Cuts

In January, Hasbro had initially outlined plans to trim around 1,000 full-time positions, with 800 jobs already eliminated. Now, the recent decision brings the total job cuts to 1,900, accounting for approximately 29% of its global workforce. At the end of 2022, Hasbro had employed roughly 6,490 individuals globally, as reported in regulatory filings.

CEO Chris Cocks addressed the challenging market conditions in an email to employees, highlighting that the anticipated difficulties had proven more formidable and enduring than forecasted.

The company's financial outlook has been significantly impacted by consumer challenges stemming from persistent inflation. Consumers worldwide have tightened their budgets, scaling back on non-essential spending, including toys, and prioritizing essential purchases.

Hasbro's October warning about a lacklustre holiday season echoed similar concerns raised by competitor Mattel, underscoring the cautious spending behaviour among consumers during the crucial retail period. Cocks reiterated the expectation that these challenging market conditions would persist well into 2024.

The toy manufacturer aims to notify the majority of affected employees over the next six months, with the remaining job cuts to occur within the following year.

Additionally, Hasbro revealed plans to vacate its underutilized office space in Providence, Rhode Island, at the lease's conclusion in January 2025. This decision aligns with a revised strategy to optimize resources and operations.

As part of its restructuring efforts, Hasbro now anticipates achieving greater cost savings of approximately $350 million to $400 million annually by the end of 2025, surpassing its previous estimate of $250 million to $300 million.

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