The list of companies carrying out mass layoffs is growing and now it was Hasbro’s turn after announcing that will cut 1,000 of its workers this year.
The wave of mass layoffs extends beyond technology companies and now it is one of the oldest toy companies in the United States that is announcing a massive cut in its workforce.
According to Hasbro, the cut represents getting rid of 15% of its workforce in the country, and it is one of the largest mass layoffs announced in recent weeks.
The Rhode Island-based toymaker justified the move as part of a strategy to reduce costsin the face of a challenging economic scenario.
More and more companies in the United States are joining the list of mass layoffs under the argument of high costs and negative conditions for the country’s economic future.
In the case of Hasbro, the cuts seek to generate savings of $300 million dollars annually until 2025, an adjustment plan that had already been announced last year.
Disappointing results in 2022
Hasbro is one of the giants of the toy industry in the United States and in the world, with traditional brands like Monopoly, Play-Doh and My Little Pony.
However, 2022 was not a good year for its more traditional divisions, according to the most recent results for the third quarter of last year.
After confirming the layoffs, Hasbro CEO Chris Cocks announced some of the adjustments that the company will carry out to resume the growth path it lost last year.
According to Cocks, the toymaker will focus on fewer big gaming and digital brands, and will focus on direct consumer growth and in the licensing business.
According to Hasbro’s CEO, the company performed negatively in terms of revenue, with a 15% drop compared to the third quarter of 2021.
He added that Hasbro’s consumer products division performed what he called “disappointing.” during the Christmas shopping seasonalthough the results of the fourth quarter of the year are not yet known.
On the contrary, Wizards of the Coast RPG unitdigital games, Hasbro Pulse and its licensing business grew, so it is precisely in these that it will focus its growth efforts.
Hasbro’s results for the last quarter of the year and for the full year will be released in mid-February.
Meanwhile, after the announcement of the layoffs, its shares plummeted 7%; while, in the last year, its titles have lost 29% of their value until Thursday of this week.
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