Toy manufacturer Hasbro on Monday said that it will be reducing its workforce by approximately 1,100 jobs, constituting 20 per cent of its employees, as the challenges in the toy industry persist through another holiday season.
The company revealed the layoffs in a memo to employees, as reported by The Wall Street Journal.
These job cuts come in addition to the 800 positions eliminated in 2023, part of cost-saving measures outlined in the previous year to achieve annual savings of up to USD 300 million by 2025. At the end of 2022, Hasbro reported having 6,490 employees.
Similar to many other toy companies, Hasbro is grappling with a decline in sales following a surge during the pandemic lockdowns, when parents were investing in toys to keep their children occupied.
During the last holiday season, several toy companies had to reduce prices to clear excess inventory due to weak demand. The challenges persist, with U.S. toy sales showing an 8 per cent decrease from January through August, according to the most recent data from Circana.
