Hasbro, the toy giant, just dropped a bombshell—20% of its crew are getting the boot. CEO Chris Cocks broke the news in a memo, saying bye-bye to 1,100 workers. And that’s not all. Earlier this year, about 800 jobs got axed too.
Tough Times for Toys
Cocks mentioned these job cuts came because the toy market’s been rougher than they expected. Sales have been down, especially after the pandemic high we saw in toys.
Why the Layoffs?
Hasbro was hoping for a better year, but the first nine months were a bummer. Cocks mentioned that the struggles they faced then are sticking around for the holiday season and might even drag into 2024.
Who’s Affected?
Some Hasbro folks will get the news this week about their jobs. The rest will have to wait it out over the next six months, according to Cocks’ memo.
Hasbro’s Size
Before the layoffs, Hasbro had about 6,300 people on board. Now, with these cuts, that number’s taking a big hit.
Market Reaction
After this news, Hasbro’s stock dropped more than 4% in late trading on Monday. Investors weren’t too thrilled about these layoffs.
What Led to This?
Back in October, Hasbro already said they weren’t expecting a great year in terms of sales. This holiday season is usually when toy sales rock, but they’re not feeling the same buzz. They even cut down their full-year revenue forecast.
Not All Toy Makers Are Hurting
While Hasbro’s struggling, its rival Mattel is feeling more optimistic. They talked about gaining more ground in the toy market, thanks to the success of the “Barbie” movie.
The “Barbie” Effect
The “Barbie” movie hit big time, becoming the top-grossing movie in the US after making over $1 billion. But here’s a twist: it’s distributed by Warner Bros. Discovery, CNN’s parent company.
Hasbro’s Other Moves
These job cuts aren’t the only cost-saving tricks Hasbro’s pulling. In August, they announced selling off their film and TV business to Lionsgate for around $500 million.
Downsizing Plans
Hasbro’s planning to shrink its office space too. They’re saying bye to their spot in Providence, Rhode Island, when their lease ends in January 2025, according to the latest memo.
Final Thoughts
Hasbro’s feeling the pinch in the toy market, and these layoffs are part of their plan to handle the tough times. While they’re cutting jobs and trimming spaces, other toy makers like Mattel are seeing brighter days ahead. Tough luck for Hasbro this time around.
