Hasbro Implements Large-Scale Workforce Reduction, Slashing 29% of Staff

Hasbro, the leading toy and entertainment company, is downsizing its workforce due to a decline in the toy market. The company has revealed plans to cut 900 jobs through a combination of voluntary early retirements and layoffs within the next 18-24 months. This decision follows a previous announcement to eliminate approximately 1,000 positions, accounting for 15% of the company's total employees. Hasbro expects to incur expenses of over $94 million for severance, stock compensation, and employee benefits associated with these cuts. With the additional 900 job losses, the total number of cuts will reach 1,900, resulting in a further $40 million in related expenses.

According to Reuters, Hasbro employed around 6,500 people at the end of 2022. The 1,900 layoffs work out to around 29% of the company's total workforce.

Hasbro has also announced the closure of its Providence, Rhode Island office when the lease is up in January 2025. Employees from the Providence office will be able to transfer to Hasbro's main headquarters in Pawtucket, Rhode Island.

In the future, Cocks stated that Hasbro's goal is to expand its business through improved supply chain efficiency, direct-to-consumer programs, and strategic licensing partnerships.

Hasbro, through its Wizards of the Coast subsidiary, owns the Dungeons & Dragons series. Additionally, they are known for the Transformers franchise and popular board games like Scrabble, Monopoly, and Clue. In the video game realm, Baldur's Gate III is based on D&D and Starbreeze, the developer of Payday, is working on an official D&D multiplayer game for its next project.

Editor's P/S

As a passionate fan of Hasbro's iconic games and toys, I am deeply saddened by the news of the company's large-scale workforce reduction. The loss of 900 jobs, representing a significant 29% of Hasbro's total workforce, is a devastating blow to the dedicated employees who have contributed to the company's success over the years. It is disheartening to learn that even after previous job cuts, Hasbro is still facing challenges in the current economic climate.

While I understand the need for Hasbro to adapt and streamline its operations to ensure long-term growth, the impact on the affected employees and their families cannot be overstated. The decision to close the Providence office adds to the uncertainty and disruption for those affected. As a loyal consumer of Hasbro products, I hope that the company will prioritize supporting its employees during this difficult transition and provide them with the necessary resources and assistance.