Hasbro shakes things up. Get ready for a shakeup at Hasbro, the toy giant. They’re making some serious cuts, waving goodbye to almost 20% of their team due to a slump in toy sales.
The Big News
Hasbro’s CEO, Chris Cocks, dropped the bomb in a memo to all the employees. They’re axing 1,100 jobs, and this isn’t the first hit—the company had already slashed 800 jobs earlier this year.
Cocks explained that market challenges were hitting harder than expected. The toy business took a hit after the crazy pandemic sales. They were hoping for a better ride this year, but things are still rough, especially leading into the holiday season.
What’s Next for Employees?
Some folks at Hasbro will find out this week if they’re on the chopping block. The rest will have to wait, with layoffs expected to roll out over the next six months, as per Cocks’ memo.
Before these layoffs, Hasbro had a team of 6,300 workers. The news sent their shares dropping by over 4% in after-hours trading on Monday.
A Bumpy Road
Hasbro had to dial down its revenue forecast in October. They were hoping for a solid holiday season, but it looks like the toy industry’s going through a rough patch. On their earnings call, the Chief Financial Officer hinted at a wider drop in toy sales.
Toy Tales: Not All Downbeat
But it’s not all doom and gloom for toy companies. Mattel, one of Hasbro’s rivals, is feeling upbeat. They’re riding high on the success of the “Barbie” movie and are aiming to grab a bigger slice of the market in the last part of the year.
The Barbie Factor
Speaking of “Barbie,” it became a box office sensation, pulling in over $1 billion and becoming the top-grossing movie in the US this summer. That’s a win for Mattel. And hey, just a side note, “Barbie” is distributed by Warner Bros. Discovery, parent company.
More Changes at Hasbro
The layoffs aren’t the only thing happening at Hasbro. In August, they spilled the beans about selling their eOne film and TV business to Lionsgate for about $500 million. They’re also downsizing their office space, planning to leave their Providence, Rhode Island, digs by January 2025 when their lease ends.
Hasbro going through a rough patch with sales, which is why they’re tightening their belt. Layoffs are hitting hard, but they’re not alone in this. Other companies in the toy biz are feeling the squeeze too, while some—like Mattel—are riding high on movie success. It’s a bumpy ride for the toy industry, and Hasbro’s making big moves to stay afloat.