Hasbro, maker of 'Scrabble' and 'Monopoly', lays off 1,100 employees
Hasbro, the company behind popular toys like Monopoly, Scrabble, Play-Doh, and Transformers, is cutting 1,100 jobs due to disappointing sales. The decision, which affects around 20% of the company's workforce, would leave many in a difficult and demotivated situation right before the holiday season. CEO Chris Cocks called the layoffs a "lever we must pull to keep Hasbro healthy" in an email to employees, admitting that there's "no sugar-coating how hard this is, particularly for the employees directly affected."
Hasbro's struggles contrasted with Mattel's success
Meanwhile, competitor Mattel's shares rose by almost 6% YTD due to the success of the Barbie movie, its iconic doll's adaptation. In contrast to Mattel's success, Hasbro's stock has dropped over 21% YTD. Cocks mentioned in his email that they anticipated a challenging year in 2023, especially in the toy market, which was coming off record highs driven by the pandemic. Hasbro's struggles, despite internal improvements, are persisting through the holiday season and are expected to continue into 2024.
Hasbro previously laid off 800 employees
Earlier in 2023, Hasbro had already eliminated 800 jobs before announcing the additional layoffs just two weeks before Christmas. Cocks stressed that this decision was "a last resort" and expressed confidence in Hasbro's future while recognizing the need for further action. Cocks also mentioned plans to further investigate minimizing its real estate presence, confirming the closure of its promiment offices post the lease expiration in January 2025.
