Hasbro to Cut 1,100 Jobs as Toy Sales Decline

New York-based toy maker Hasbro announced on Monday that it will be cutting approximately 1,100 jobs, which accounts for 20 percent of its workforce. This decision comes as the toy industry continues to struggle during another holiday shopping season.

Hasbro’s Layoffs and Cost-Saving Measures

In a memo to employees published in a regulatory filing, Hasbro revealed that these job cuts are in addition to the 800 positions that were already eliminated in 2023. The company aims to save up to $300 million annually by 2025 through these measures. As of the end of 2022, Hasbro had a total of 6,490 employees.

Challenges in the Toy Industry

Like many other toy companies, Hasbro has been grappling with a decline in sales following the surge experienced during pandemic lockdowns. Parents were purchasing toys to keep their children entertained during this time. However, the demand for toys weakened, leading to significant price reductions during the last holiday season. According to Circana’s latest data, toy sales in the United States were down 8 percent from January through August.

Hasbro’s Response and Future Plans

In a memo, Hasbro CEO Chris Cocks acknowledged the challenges faced by the company and stated that they will focus on “fewer, bigger brands; gaming; digital; and our rapidly growing direct-to-consumer and licensing businesses.” Despite making progress across the organization, the headwinds experienced in the first nine months of the year have persisted into the holiday season and are expected to continue into 2024.

Market Response

Following the announcement, Hasbro Inc.’s shares dropped nearly 6 percent in after-market trading on Monday.