It’s a not-so-happy holiday season at Hasbro.
The Rhode Island-based toy and game company has been struggling to revamp its business amid an increasingly challenging environment. In a letter sent to employees at 4:30 p.m. ET today and viewed by The Toy Book, the company dropped a lump of coal into the stockings of approximately 1,100 staffers whose positions will be eliminated in the coming months.
The latest workforce reduction at the company behind Transformers, Power Rangers, and My Little Pony follows a previous round of layoffs that resulted in approximately 800-900 staffers being cut following a strategic review of the company’s business that began last fall.
“The market headwinds we anticipated have proven to be stronger and more persistent than planned,” wrote Hasbro CEO Chris Cocks in the letter to his staff. “While we’re confident in the future of Hasbro, the current environment demands that we do more, even if these choices are some of the hardest we have to make.”
Hasbro says that many affected employees have been notified already or will be notified within the next 24 hours. The remaining reductions will take place over the next year.
I know this news is especially difficult during the holiday season. We value each of our team members – they aren’t just employees, they’re friends and colleagues. We decided to communicate now so people have time to plan and process the changes. For those employees affected we are offering comprehensive packages including job placement support to assist in their transition."
Looking ahead, Hasbro says that it will let its lease expire on its “underused” office in Providence, Rhode Island in 2025 and will welcome staffers to its global headquarters in neighboring Pawtucket.
While the U.S. retail industry has enjoyed a sales bump in recent weeks, the jury is still out on the health of the toy department this season. During Q3 earnings calls, the major toymakers unanimously cautioned a soft season as the industry continues to come down from historic pandemic-era sales spikes.
Meanwhile, the value channel has benefitted from softness at mass, with mainline products showing up at Ross Dress for Less, Ollie’s, TJ Maxx, Burlington, and others for pennies on the dollar. Recent retail visits conducted by The Toy Book have revealed previous retailer exclusives from Hasbro’s major lines, including G.I. Joe, Star Wars, Transformers, and more showing up at discounts of 75% off or more.
As Circana’s Juli Lennett pointed out in the October issue of The Toy Book, this year has been one of “rebalance.”
Perhaps it will take the bulk of 2024 to finally normalize the industry and get back to pre-pandemic stability.
