The holiday season for Hasbro, one of the largest toy companies in the world, is looking bleak with the company announcing massive layoffs and reorganization. Hasbro plans to cut 1,100 jobs as it struggles to stay afloat amid slumping sales.
The layoffs come as toy sales have plummeted, especially during the Covid-19 pandemic which has hampered many of the company’s efforts. The company’s recent restructuring, which was announced on November 16th, will affect its US workforce of about 5,000 people.
According to Hasbro’s CEO, Brian Goldner, the company is restructuring its operations to “consistently improve our cost structure and be faster, more agile, and more efficient as we navigate a changing market place and consumer environment.”
Hasbro’s latest restructuring is part of a larger effort to reduce expenses and focus on product innovation. The company has also launched a $100 million cost-cutting initiative which is likely to impact other areas of the business such as marketing, research, and human resources.
Hasbro has seen its revenues decline during the pandemic, down 5% from 2019. While some of the losses are attributed to the pandemic, the company is also struggling with consumers spending less and shifting their purchases to digital channels.
Hasbro is not alone in facing these challenges. Other toy companies, including Mattel and LEGO, have also seen their sales decline in recent years. Mattel even laid off 2,200 employees last year.
As holiday sales approach, Hasbro is hoping that consumers will look to traditional toy stores for their gifts. The company is banking on new movies and popular franchises to help drive sales.
Hasbro’s layoffs may be a step towards cutting costs and becoming more efficient. However, the company will need to find creative ways to be successful in the current market. Otherwise, it may continue to struggle in the holiday season and beyond.