LogInThat's around 20% of the company's entire workforce.
Image Credit: Hasbro/Scopely, Monopoly GO
Hasbro, the toy maker and owner of Wizards of the Coast and Monopoly, has revealed plans to cut its total workforce by 20%, resulting in the layoffs of around 1,100 employees.
The announcement, made through a memo to employees published in a regulatory filing, comes in addition to the 800 job cuts implemented in 2023 as part of the company's strategy to achieve annual savings of up to $300 million by 2025 outlined last year. The layoffs can be attributed to the same factors affecting many tech companies this year, primarily the post-pandemic slowdown in sales, as back in February, Hasbro reported a full-year revenue of $5.86 billion, marking a 9% year-on-year decrease.
"A year ago, we laid out our strategy to focus on building fewer, bigger, better brands and began the process of transforming Hasbro," reads the announcement. "Since then, we've had some important wins, like retooling our supply chain, improving our inventory position, lowering costs, and reinvesting over $200M back into the business while growing share across many of our categories.
But the market headwinds we anticipated have proven to be stronger and more persistent than planned. 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."
Despite a decrease in the company's overall earnings, its Wizards of the Coast and digital gaming segment has experienced a 3% year-on-year growth and brought Hasbro $1.32 billion, with the critical acclaim of Baldur's Gate 3 and the success of Monopoly Go being particularly notable. The company anticipates that the newly implemented layoffs will result in savings of up to $100 million in 2024.
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