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Hasbro plans to layoff 1,000 global employees in a bid to save $250 million

By Nithya Bose in US business news, posted January 27, 2023

Hasbro has announced layoffs affecting 1,000 full-time employees after a 15 percent drop in sales.

The toy-making giant said the job losses are part of broader leadership and organizational restructuring.

Eric Nyman, president, and chief operating officer is also resigning from the company.

The 15 percent downsizing of its global workforce comes as the toymaker tries to save between $250 million and $300 million annually by the end of 2025.

CEO Chris Cocks said the company will “focus on fewer, bigger brands; gaming; digital; and our rapidly growing direct-to-consumer and licensing businesses.”

Hasbro reported a 15 percent drop in sales in the third quarter of last year compared to the same period a year earlier.

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Cocks said Hasbro's consumer-products segment fared poorly in the last three months of 2022 “against the backdrop of a challenging holiday consumer environment.”

But he said its role-playing game segment Wizards of the Coast, digital gaming, Hasbro Pulse, and licensing business had strong fourth-quarter growth.

In recent quarters, the business has struggled to generate revenue.

It faces stiff comparisons with pandemic-fueled toy sales, inflation hitting on shoppers' wallets, and high inventory levels.

Source: ABC News

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