Almost a year after announcing it would cut 15% of its personnel due to lower sales, Hasbro (HAS.O.) revealed that it will eliminate 900 jobs worldwide. Hasbro had said in January that it would eliminate around 1,000 full-time jobs. The business said on Monday that 800 positions had already been eliminated.
As per a regulatory filing, Hasbro employed around 6,490 individuals globally at the end of 2022. With the job cuts announced on Monday, 1,900 people, or 29% of the workforce, have been laid off.
The company’s shares dropped around 6% in extended trade, while Barbie manufacturer Mattel (MAT.O.) fell more than 1%.
In a Monday email to staff, CEO Chris Cocks stated, “Market headwinds we anticipated have proven to be stronger and more persistent than planned.”
Global consumers have found it challenging to deal with the ongoing high inflation rate, forcing them to spend less on toys and more on necessities.
With rival Mattel, the business issued a warning in October about a dismal Christmas season and customer caution as we approached retailers’ busiest time of year.
“The headwinds we saw through the first nine months of the year have continued into the holiday season and are likely to persist into 2024,” Cocks stated.
The company that produces Monopoly and “Transformers” action figures announced on Monday that most of its staff will receive notice over the next six months, while the remaining staff will receive notice over the following year.
Hasbro said that the business has chosen to vacate the Providence, Rhode Island, location at the end of its lease term in January 2025 because it was not being utilized to its full potential.
Hasbro raised its earlier estimate of $250 million to $300 million to $350 million to $400 million in gross annual run-rate cost reductions by the end of 2025.
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