Hasbro Decides To Lay Off 1,100 Workers Due To Weak Sales Of Toys

Hasbro is about to cut 1,100 jobs as the conglomerate company struggles to deal with slumping sales of toys. The company is best known for making My Little Pony and Transformers toys. Earlier this year, the company has already cut 800 jobs.

At the start of the year, the company had about 6.3K employees. However, Hasbro has decided to lay off 1.1K employees after the company’s shares fell more than 4% in extended trading on Monday. After a few hours of the slip in Hasbro’s shares, the share value of Mattle (Hasbro’s rival) also slipped.

Chris Cocks, the CEO of Hasbro, said in a company memo –

“We anticipated the first three quarters to be challenging, particularly in Toys, where the market is coming off historic, pandemic-driven highs. […] In the company’s most recent quarterly earnings report, Hasbro slashed its already-soft full-year outlook, projecting a 13% to 15% revenue decline for the year.”

(source)

The memo also added that there has been a significant drop in popular toy brand sales. Popular brand toys, including My Little Pony, Transformers, and Nerf, fell by 18%. During the closing of Exchanges, Hasbro’s stock was down by nearly 20%.

Mattel, the rival of Hasbro, has also warned of soft sales. However, Mattel saw its stock rise by 6% through Monday. This is due to the box office success of the movie “Barbie.” However, this number is still behind the gain that the S&P 500 posted so far in 2023.

This holiday season can be a bit tepid for retailers, as there are not many discounts for consumers when it comes to toys. The discounts were less as compared to a year earlier.

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