Hasbro Announces 20% Workforce Cut Due to Ongoing Toy Business Challenges

         

Hasbro is cutting 1,100 jobs, equal to 20% of its workforce, as the toy industry continues to struggle with declining sales, leading to shares falling nearly 6% in after-market trading.

Hasbro Announces Significant Workforce Reduction

Hasbro, the renowned toy maker, revealed its decision to cut approximately 1,100 jobs, which accounts for 20% of its workforce. This move comes amidst persistent challenges faced by the toy industry.

Continued Struggles in the Toy Industry

Hasbro’s workforce reduction announcement aligns with the broader downturn in the toy business, which has been grappling with declining sales, particularly after the initial surge during pandemic lockdowns. The company cited a drop of 8% in toy sales in the U.S. from January through August, reflecting the enduring challenges.

CEO’s Response and Company’s Future Strategy

In a memo to employees, Hasbro’s CEO Chris Cocks acknowledged the unexpectedly robust and persistent market headwinds. He emphasized the company’s strategic shift to focus on fewer, larger brands, gaming, digital initiatives, and the rapidly expanding direct-to-consumer and licensing businesses to navigate the challenging landscape effectively.

Investor Reaction

Following the announcement, Hasbro Inc. experienced a nearly 6% fall in after-market trading, indicating investor concern about the company’s ability to address the industry challenges and ensure future growth.

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