Hasbro Announces Job Cuts Amid Weak Toy Sales
Hasbro is laying off about 1,100 employees as the toy maker struggles with soft sales that have carried into the holiday shopping season, according to a company memo obtained by CNBC. Hasbro had about 6,300 employees as of earlier this year, according to a company fact sheet. The company, which already laid off hundreds of employees earlier this year, had warned in October that trouble was on the horizon. In the company’s most recent quarterly earnings report, Hasbro slashed its already-soft full-year outlook, projecting a 13 percent to 15 percent revenue decline for the year.
Total Retail's Take: Even this summer's blockbuster film "Barbie" hasn't done enough to buoy the toy industry's fortunes. The vertical has struggled to maintain the momentum of historic sales gains during the height of the COVID-19 pandemic. That decline is reflected in Hasbro's earnings as well as the news that the company would once again need to reduce headcount to decrease costs. Mattel, owner of the Barbie brand and Hasbro's chief competitor, has also seen a softening in demand for its toys. Can the category ride a strong holiday season of toy buying, still very much in question, into a promising fresh start in 2024? For now, Hasbro is taking a cautious approach, noting that the headwinds seen in the category this year are likely to persist in 2024.