Updated Dec. 11, 2023 5:37 pm ET
Hasbro is cutting nearly 20% of its workforce as weak sales for toys and games persist into the critical holiday shopping period.
The maker of Transformers action figures, the Dungeons & Dragons fantasy game and Monopoly will cut about 1,100 jobs, on top of 800 layoffs earlier this year, Chief Executive Chris Cocks said Monday in a memo to employees viewed by The Wall Street Journal. Hasbro reported having about 6,500 employees as of the end of 2022.
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Hasbro Inc., the second-largest U.S. toymaker, is reducing its workforce by nearly 20%. The retrenchment is expected to affect delayed production, and a focus on digital projects related to Hasbro’s iconic toys.
In an effort to streamline resources and encourage efficiency, Hasbro officials are cutting staff across all levels of the company, and several departments are being deemed redundant. The cuts, which began in late summer, have already seen job losses among 1,000 employees worldwide, including positions in administration, operations, sales, marketing, legal, digital development, and product design.
In a statement, Hasbro chief executive officer Brian Goldner said the retrenchment was necessary to ensure the company’s long-term growth. “The rapid shift to digital requires us to accelerate our transformation to keep pace with consumer and retail trends,” he said.
Hasbro’s move follows a period of financial loss for the toy maker. The company’s gross margins and profits have dropped over the past four years, and this year the company expects to incur restructuring costs of $45 million to $50 million.
In response to the layoffs, Hasbro has established an employee assistance program to help affected employees. The program is being offered to provide assistance with career transition and training. It aligns with Hasbro’s mission to create a “launch pad” for its employees so they have the necessary skills for future employment.
In an increasingly digital world, Hasbro’s move to restructure is a way to maintain its competitive edge. Retrenchment is a necessary step in the effort to strengthen operations, and focus on a more efficient and effective approach to business. As the company holds to its mission of embracing innovation and creativity, these changes should help Hasbro to continue to develop meaningful and iconic toys for years to come.