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Toy maker Hasbro cuts 1,100 jobs due to poor sales
https://www.whatjobs.com/news/usa/us-employment-news/toy-maker-hasbro-cuts-1100-jobs-due-to-poor-sales
By Nithya Bose in Employment News, posted December 12, 2023
Hasbro is to cut 1,100 jobs, nearly 20 percent of its workforce, as it grapples with a prolonged decline in toy sales.
In a memo to employees, CEO Chris Cocks attributed the decision to the market challenges, which proved "stronger and more persistent than planned."
The layoffs follow an earlier elimination of around 800 positions this year.
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Cocks said: “We anticipated the first three quarters to be challenging, particularly in toys, where the market is coming off historic, pandemic-driven highs.
“While we have made some important progress across our organization, the headwinds we saw through the first nine months of the year have continued into Holiday and are likely to persist into 2024.”
The reductions will occur over the next six months, with some employees receiving notices this week.
Hasbro, known for iconic toys like Transformers and Play-Doh, had 6,300 employees before the layoffs.
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The company's shares fell over four percent in after-hours trading on Monday, December 11.
Hasbro had previously lowered its full-year revenue guidance in October.
It was just before the crucial holiday season, typically the peak sales period for toy manufacturers.
Hasbro CFO Gina Goetter had cautioned about broader declines in the toy category during the company's earnings call.
However, rival Mattel reported benefiting from the success of the "Barbie" movie.
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The company said it “expects to gain market share in the fourth quarter and full year.”
The move to axe jobs is part of Hasbro's broader cost-cutting strategy.
It follows the announcement in August to sell its eOne film and TV business to Lionsgate for approximately $500 million.
Additionally, the company plans to reduce its office footprint by exiting its Providence, Rhode Island, space when the lease expires in January 2025.
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