Hasbro, the popular toymaker known for brands like Peppa Pig, Transformers, and Magic: The Gathering, announced on Monday its plans to eliminate approximately 1,110 jobs, which accounts for nearly 17 percent of its workforce. This decision comes as the company continues to face challenges due to weak sales.
In a memo to staff, Hasbro’s CEO, Chris Cocks, expressed that the anticipated market difficulties have proven to be stronger and more persistent than expected.
These layoffs, announced during the crucial holiday shopping season, follow a previous reduction of 800 jobs earlier this year. The company expects the majority of the latest job cuts to occur within the next six months, with the remainder taking place over the next year.
Mr. Cocks stated in the memo, “We expected the first three quarters to be challenging, especially in the toy sector, where the market is returning to normal levels after the pandemic-driven surge. While we have made progress in our organization, the headwinds we faced in the first nine months have continued into the holiday season and are likely to persist into 2024.”
In its third-quarter earnings report, Hasbro had already indicated that weaker toy sales would affect its outlook, projecting a decline in overall revenue of about 13 to 15 percent for the year.
After-hours trading saw a decrease of approximately 5.7 percent in the company’s shares, which are based in Pawtucket, R.I. The stock, closing at $48.89 on Monday, has experienced a decline of nearly 19 percent over the past year.
Mr. Cocks also mentioned that the company would explore options to reduce its real estate footprint and would close its Providence, R.I., office once its lease expires in January 2025.