Toymaker Hasbro to cut 900 more jobs amid weak sales, total layoffs stand at 1,900

Toymaker Hasbro announced plans to further reduce its workforce by 900 employees globally on Monday, almost a year after revealing intentions to cut 15 per cent of its staff due to sluggish sales.

The company had initially disclosed a plan to eliminate around 1,000 full-time positions in January, having already implemented 800 job cuts by Monday’s announcement, reported news agency Reuters.

At the end of 2022, Hasbro had a workforce of approximately 6,490 people worldwide, according to regulatory filings cited in the news agency’s report.

The most recent job cuts bring the total layoffs to 1,900, constituting 29 per cent of its workforce. In extended trading, Hasbro’s shares dropped about 6 per cent, with competitor Mattel slipping more than 1 per cent.

CEO Chris Cocks, in an email to employees, acknowledged that the market challenges the company anticipated have proven to be more formidable and enduring than initially planned.

Global consumers grappling with persistent inflationary pressures have curtailed discretionary spending, impacting toy sales. In October, Hasbro and rival Mattel both cautioned about a dull holiday season and observed consumers adopting more frugal spending habits.

Cocks noted that the challenges experienced in the first nine months of the year have extended into the holiday season and are likely to persist into 2024. The job notifications for the majority of employees will occur over the next six months, with the remaining balance taking place over the following year.

Hasbro also disclosed plans to exit its Providence, Rhode Island office by January 2025, as it is currently not being fully utilised.

The company now anticipates achieving gross annual run-rate cost savings ranging from $350 million to $400 million by the end of 2025, an increase from the previous estimate of $250 million to $300 million.