Hasbro has announced layoffs affecting 1,000 full-time employees after a 15 percent drop in sales.
The toy-making giant said the job losses are part of broader leadership and organizational restructuring.
Eric Nyman, president, and chief operating officer is also resigning from the company.
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The 15 percent downsizing of its global workforce comes as the toymaker tries to save between $250 million and $300 million annually by the end of 2025.
CEO Chris Cocks said the company will “focus on fewer, bigger brands; gaming; digital; and our rapidly growing direct-to-consumer and licensing businesses.”
Hasbro reported a 15 percent drop in sales in the third quarter of last year compared to the same period a year earlier.
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Cocks said Hasbro’s consumer-products segment fared poorly in the last three months of 2022 “against the backdrop of a challenging holiday consumer environment.”
But he said its role-playing game segment Wizards of the Coast, digital gaming, Hasbro Pulse, and licensing business had strong fourth-quarter growth.
In recent quarters, the business has struggled to generate revenue.
It faces stiff comparisons with pandemic-fueled toy sales, inflation hitting on shoppers’ wallets, and high inventory levels.
Source: ABC News
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