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Business

Hasbro Shocking Workforce Shake-Up: Massive Layoffs, CEO Confession, and a Billion-Dollar Exit Plan Revealed!

Hasbro revealed on Monday its plans to further cut its global workforce by 900 employees, nearly a year after initially announcing intentions to trim 15 percent of its staff due to sluggish sales. The company had initially disclosed a plan to eliminate approximately 1,000 full-time positions in January, having already implemented 800 job cuts by Monday’s announcement, as reported by Reuters.

READ: Unmasking My Unexpected Triggers: From Disney Magic to TV Violence, How the Israel-Gaza Conflict Altered My Emotions!”

By the end of 2022, Hasbro had a workforce of around 6,490 people globally. The recent job cuts bring the total layoffs to 1,900, constituting 29 percent of its workforce. In response to the news, Hasbro’s shares dropped about 6 percent in extended trading, while competitor Mattel slipped more than 1 percent.

Hasbro

CEO Chris Cocks, in an email to employees, acknowledged that the market challenges the company anticipated have proven to be more formidable and enduring than initially planned. Global consumers, dealing with persistent inflationary pressures, have curtailed discretionary spending, impacting toy sales. Both Hasbro and rival Mattel had cautioned in October about a lackluster holiday season, with consumers adopting more frugal spending habits.

Cocks noted that the challenges experienced in the first nine months of the year have extended into the holiday season and are likely to persist into 2024. The majority of job notifications for employees will occur over the next six months, with the remaining balance taking place over the following year.

In addition to the job cuts, Hasbro announced plans to exit its Providence, Rhode Island office by January 2025, citing its current underutilization. The company now expects to achieve gross annual run-rate cost savings ranging from $350 million to $400 million by the end of 2025, an increase from the previous estimate of $250 million to $300 million.

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