Hasbro is cutting 1,100 jobs as it grapples with poor toy sales extending into the holiday season, reflecting the challenges faced by the company in the current market.
Hasbro’s Layoff Amid Ongoing Sales Struggles
Toy maker Hasbro is implementing a significant layoff, with about 1,100 employees being affected. This decision comes as the company faces continued weak sales performance, particularly in its popular toy brands, extending into the holiday shopping season.
Sales Challenges and Market Conditions
Hasbro CEO Chris Cocks acknowledged the tough market conditions, highlighting the impact of the pandemic-driven highs in the toy industry and the persisting headwinds. The company has experienced a decline in revenue and sales of key brands, including My Little Pony, Nerf, and Transformer.
Impact on Stock and Market Environment
The news of the layoffs led to a more than 5% drop in Hasbro’s stock in premarket trading, reflecting investor concerns about the company’s performance. Competitor Mattel also faced similar sales challenges, albeit with some positive developments attributed to the success of the ‘Barbie’ film.
Company Memo and Strategic Transformation
CEO Chris Cocks outlined the company’s strategic direction and the challenges encountered in the market. The memo emphasized the need for Hasbro to streamline operations and ensure its profitability amid the ongoing difficulties.
Next Steps and Support for Affected Employees
The memo also detailed the next steps following the layoffs, including the handling of affected employees and the broader organizational restructuring. It highlighted support measures for those impacted, such as comprehensive packages and job placement support.
Future Outlook and Business Strategy
Looking forward, the memo articulated Hasbro’s commitment to investing in key areas despite the cost-cutting measures. The company aims to capitalize on various opportunities, such as supply chain efficiency and partnerships, to drive new brand development and ultimately return to growth.