Hasbro said Monday it might cut one other 900 jobs globally, nearly a 12 months after the toymaker announced it would cut back 15% of its workforce amid weaker sales.
Hasbro had said in January it might cut about 1,000 full-time positions. On Monday, the corporate said it had already cut 800 jobs.
At the top of 2022, Hasbro had employed about 6,490 people worldwide, in accordance with a regulatory filing. The job cuts announced on Monday take the entire layoffs to 1,900, or 29% of its workforce.
Shares of the corporate were down about 6% in prolonged trading, while Barbie maker Mattel also slipped greater than 1%.
“Market headwinds we anticipated have proven to be stronger and more persistent than planned,” CEO Chris Cocks said in an email to employees on Monday.
Consumers worldwide have struggled to manage with persistently high inflation, forcing them to reduce on discretionary spending including toys and focus more on buying essentials.
Hasbro had said in January it might cut about 1,000 full-time positions. REUTERS
In October, the corporate joined rival Mattel in warning of a weak holiday season and indicating that buyers were being frugal heading into a very powerful period for retailers.
“The headwinds we saw through the primary nine months of the 12 months have continued into holiday and are more likely to persist into 2024,” Cocks added.
The maker of “Transformers” motion figures and Monopoly on Monday said that majority of its employees can be notified over the following six months, while the balance would occur over the following 12 months.
The maker of “Transformers” motion figures and Monopoly on Monday said that majority of its employees can be notified over the following six months
Hasbro also said its Windfall, RI, office was not getting used to its full capability and the corporate had decided to exit it at the top of its lease term in January 2025.
Hasbro now expects to deliver gross annual run-rate cost savings of about $350 million to $400 million by the top of 2025, up from its previous estimate of $250 million to $300 million.
