Hasbro makes big job cuts. Hasbro, the folks behind Transformers and Play-Doh, is facing a tough time with toy sales taking a hit. They’re saying bye-bye to around 1,100 employees, which is almost 20% of their crew.
The Big News
CEO Chris Cocks dropped the bomb in a memo on Monday. This isn’t the first time they’ve had to do this—earlier this year, they axed about 800 jobs.
What Went Down
Cocks mentioned that the toy market’s been rough. They thought things might get better after the crazy pandemic highs, but the reality’s hitting harder than expected.
Tough Times Ahead
For the folks at Hasbro, it’s not a one-time thing. Some will get the news this week, and others will slowly wrap up over the next six months.
Before the layoffs, Hasbro had about 6,300 people on board. The company’s taking a hit in the stock market too—Hasbro’s shares dropped over 4% after this news.
Why the Cuts?
In October, Hasbro lowered its expected sales for the year. The holiday season, usually a goldmine for toy sellers, isn’t looking so bright. Their CFO said toys in general aren’t doing as well lately.
The Other Side
Hasbro’s rival, Mattel, seems to be doing better. They mentioned doing great thanks to the “Barbie” movie. It’s been a hit, making over $1 billion and becoming a top flick soon after it hit theaters.
What’s Up with Barbie?
“Barbie” is flying high, becoming a blockbuster movie. But here’s the twist—it’s distributed by Warner Bros. Discovery, parent company.
More than Job Cuts
Besides the layoffs, Hasbro’s making other moves to save money. Back in August, they decided to sell their One film and TV business for about $500 million.
Downsizing the Office
Hasbro’s also looking at downsizing their office space. They’ll say bye to their Rhode Island spot in 2025 when their lease wraps up.
The Bottom Line
Hasbro’s feeling the squeeze in the toy world. They’re not alone—other companies are feeling the heat too. But while they’re cutting jobs, some of their rivals seem to be doing alright, especially with hit movies like “Barbie” making bank.
Hasbro’s tough call to lay off 1,100 employees shines a light on the struggles in the toy industry. With sales not meeting expectations and the holiday season looking less lucrative, they’re tightening their belts to weather the storm.
Despite the gloomy forecast, Hasbro’s competitors like Mattel seem to be riding high, especially with the success of the “Barbie” movie. While Hasbro makes these tough decisions to downsize and restructure, the toy market continues to navigate uncertain waters.
It’s a reminder that even in the world of toys and games, there are ups and downs. As Hasbro trims its workforce and makes strategic shifts, the hope remains that they can bounce back stronger and adapt to the changing landscape of the industry.