Hasbro Announces Layoffs Amid Industry Turmoil

Hasbro's Layoffs and Industry Impact

Just before the holiday season, Hasbro has announced that it will be laying off over 1,000 members of its staff. This adds to the multitude of layoffs in the video game industry this year, as more entertainment and gaming companies are reducing their work forces and shutting down entire departments.

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Known for its expansive toy lines, Hasbro is the American conglomerate that holds the trademark and product rights to Kenner, Milton Bradley, Parker Brothers, Wizards of the Coast, and more. Hasbro made headlines this year after it licensed the Dungeons and Dragons setting to the hit game Baldur's Gate 3, though the success of that game has not been strong enough to compensate for a lack of profits in other Hasbro divisions.

Noting struggling toy sales, Hasbro CEO Chris Cocks informed employees that the company will be laying off more than 1,000 staff members over the next 18 to 24 months. Cocks noted that, while Hasbro saw some impressive profits in certain areas, other subsidiaries were under-performing. As such, Hasbro is seeking to shake things up structurally. The CEO explained that the company needs to ensure it has a "solid and profitable" foundation, which will require Hasbro to "get even leaner" in the form of trimming back its work force.

The Impact of Layoffs Across Industries

As big names across multiple industries report record profits for 2023, many are questioning the continued studio closures and employee layoffs. In spite of major titles and properties boosting sales by millions of dollars, executives frequently point to "disappointing returns" to justify cut-backs. Fans of gaming and entertainment have accused those in leadership positions of being greedy. Activision Blizzard was among the companies to let go staff members this year, and some were quick to point out past issues with Blizzard executives' bonuses after major layoffs. While records do indicate that Hasbro has seen a decline in toy sales after the post-COVID profit boom, its digital and licensing divisions show financial growth. Whether the staff members affected by the layoffs at Hasbro will find employment elsewhere in the industry remains to be seen.

Game and toy developers continue to feel the brunt of brutal business models. Executives often demand continuous exponential growth, which many cite as a key issue that has led to the string of layoffs and shutdowns this year. As reports of broken morale after layoffs at Bungie grab the attention of employees elsewhere, many are now keeping an eye on Hasbro to see how the company moves forward with its "lean" restructuring.