Hasbro laying off over 20% of employees due to low toy sales

At what should be its busiest time of the year, Hasbro, one of the biggest toy makers in the industry, has announced it will be laying off 1,100 employees.

The cuts, which represent 20% of its workforce. are being made due to low toy sales, which Hasbro CEO Chris Cocks said is expected to continue into 2024. The toy company is known for various iconic brands, such as Mr. Potato Head, Transformers, and Play-Doh, along with board games including Monopoly, Dungeons & Dragons, and Magic: The Gathering.

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“Today we’re announcing additional headcount reductions as part of our previously communicated strategic transformation, affecting approximately 1,100 colleagues globally in addition to the roughly 800 reductions already taken,” read a memo from Cocks shared with the Washington Examiner. “Our leadership team came to this difficult decision after much deliberation. We recognize this is heavy news that affects the livelihoods of our friends and colleagues. Our focus is communicating with each of you transparently and supporting you through this period of change.”

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Most of the layoffs will take place over the course of six months, and a majority of employees will be informed of them within a day of the memo’s release. Beyond that, the company is also not renewing its lease for its Providence, Rhode Island, office.

“I know this news is especially difficult during the holiday season,” the memo read. “We value each of our team members – they aren’t just employees, they’re friends and colleagues. We decided to communicate now so people have time to plan and process the changes. For those employees affected we are offering comprehensive packages including job placement support to assist in their transition.”

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In October, Hasbro reported a 10% decline in its revenue, along with an 18% drop in the company’s consumer products, in its third quarter of 2023 report. It was the fourth consecutive quarter report that the company reported a loss.

Hasbro is one of many major companies that has made major layoffs this year, with others including Meta, Microsoft, Amazon, and Disney. The layoffs by Disney were announced in February, with CEO Bob Iger announcing that laying off 7,000 employees was part of a planned $5.5 billion effort in cost savings.