Hasbro, the toy company that makes Transformers, My Little Pony, and Monopoly, announced yesterday that it was eliminating almost 1,000 additional positions after the initial round of cost-cutting failed to meet targets.
The company announced in a legal filing with the Securities and Exchange Commission that it would eliminate 900 jobs in the next two years.
In a memo to staff, CEO Chris Cocks stated, “The market headwinds we anticipated have proven to be stronger and more persistent than planned.”
“The current environment demands that we do more, even though we are confident in Hasbro’s future.”
The company had previously declared in January that it would be laying off about 1,000 employees globally this year as a result of lower-than-anticipated holiday sales.
As per its annual report, the company employed 6,490 individuals as of the end of 2022.
In the third quarter, Hasbro reported a net loss of US$171 million (RM800 million), mostly as a result of a steep decline in activity in its primary market of traditional toys and games.
Just a year prior, Hasbro reported a profit of US$129 million, but the winds have shifted. The first wave of downsizing, primarily allocated to severance payments, carried a hefty price tag of US$94 million. Now, with the unveiling of the second downsizing phase, an additional expense of approximately US$40 million looms. The company’s financial landscape is reflected in the post-market trading scene, as Hasbro shares experienced a significant dip of 4.89% after the closure of the New York Stock Exchange. The toy-making giant navigates turbulent waters, making strategic decisions in response to evolving market dynamics.
