The toy company Hasbro has announced it will be laying off nearly 20% of its workforce, a sign of the current sluggish state of toy sales, even during the holiday season. Hasbro, the Rhode Island-based company behind Monopoly, Play-Doh, and Transformers, announced on Monday, Dec. 11, that it will cut about 1,100 jobs; this is on top of 800 layoffs earlier this year.
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Hasbro CEO Chris Cocks said in a statement that the decision, which has come just weeks before Christmas, was made as “a last resort.” Cocks added that he understands that wind of this news comes at a difficult time during the holidays.
“We anticipated the first three quarters to be challenging, particularly in toys, where the market is coming off historic, pandemic-driven highs,” Cocks wrote. “While we have made some important progress across our organization, the headwinds we saw through the first nine months of the year have continued into holiday and are likely to persist into 2024.”
The latest cuts are expected to be completed within 18 to 24 months. Hasbro said the layoffs were necessary as the company tries to rebound from a slowdown in sales following historic highs during pandemic lockdowns. Research firm Circana said U.S. toy sales were down 8% through September.
In his email to employees, Cocks added that anyone affected by the layoffs, the company is offering comprehensive packages including job placement supoport.
“Let’s support each other, and lean in to drive through these necessary changes, so we can return our business to growth and carry out Hasbro’s mission,” Cocks wrote.
