Hasbro, a leading toy and entertainment company, is undergoing significant restructuring, resulting in the loss of 900 jobs. This decision comes as part of a broader cost-saving initiative announced in October 2022, which initially planned to eliminate about 1,000 positions, roughly 15% of Hasbro's workforce.
The additional layoffs bring the total reduction to approximately 1,900 employees, equating to around 29% of the company's total workforce, which stood at 6,500 at the end of 2022. Hasbro's CEO, Chris Cocks, communicated the difficult decision in a memo to staff, acknowledging the impact on employees' livelihoods and describing the cuts as necessary for the company's health and future growth.
The reduction includes both voluntary early retirement and layoffs, expected to incur over 40 million USD in expenses, adding to the previously estimated 94 million USD related to the initial job cuts. Cocks cited the changing market dynamics post-pandemic, noting that while Hasbro thrived during the COVID-19 pandemic, it now faces significant headwinds that are likely to persist through the holiday season and into 2024.
As part of its strategy to stabilize and grow the business, Hasbro is focusing on supply chain efficiency, direct-to-consumer programs, and key licensing partnerships. Additionally, the company confirmed the closure of its Providence, Rhode Island office in January 2025, offering relocation opportunities to its Pawtucket headquarters.
Hasbro, known for franchises like Dungeons & Dragons, Transformers, and board games like Scrabble, Monopoly, and Clue, also has a presence in the video game industry. Notably, Baldur's Gate III is based on D&D, and a new D&D multiplayer game is being developed by Payday creator Starbreeze. These layoffs reflect the company's efforts to adapt to the evolving market and position itself for future success.
Source: GameSpot