Toy and entertainment giant Hasbro declared that it would cut 1100 jobs as the company couldn’t reach the estimated sales target during the holiday season. The Transformers and My Little Pony toys maker had previously cut off 800 jobs this year and is now laying off 1100 employees, as the company memo recorded unsatisfactory sales creeping into the holiday season.
As reported by CNBC, the company had 6300 employees earlier this year. Now the company is set to chop off its workforce by more than a fourth, or 29% of the company’s total workforce. While Hasbro’s stocks suffered a fall of 21%, its rival Mattel enjoyed 6% rise of its share, as the brand was boosted by the release of “Barbie”, the movie.
The company, which warned of such circumstances in October, has come to such a decision as it revealed that when its organisation design and cost structure were reviewed, toys landed in a softer market, leading to the loss of jobs. The cutting-off will include layoffs and voluntary early retirement in the upcoming eighteen to twenty-four months.
Having faced a revenue decline of approximately 15% this year, Hasbro aspires to spend $94 million on stock compensation, severance and employee benefits. Chris Cocks, the chief executive of Hasbro said in a memo to staff, “While we have made some important progress across our organization, the headwinds we saw through the first nine months of the year have continued into Holiday and are likely to persist into 2024.”
