Hasbro Responds to Economic Uncertainty, Cuts Workforce by 15%
The toymaker's staff reductions will affect around 1,000 positions.
Even Hasbro Inc. has been significantly affected by global economic volatility and plans to make significant changes. The company announced Thursday that it would cut 15% of its workers, eliminating around 1,000 positions within the next few weeks. Additionally, Hasbro's president and chief operating officer, Eric Nyman, will reportedly leave the company.
The Wall Street Journal reported that Hasbro's early fourth-quarter results showed revenue down 17%. Adjusted earnings ranged between $1.29 and $1.31 a share, and shares dropped 8.5% in after-hours trading. Hasbro has experienced an overall 29% drop in the last 12 months.
WSJ quoted Chief Executive Chris Cocks, who said Hasbro is "focused on implementing transformational changes aimed at substantially reducing costs and increasing our growth rates and profitability."
Cocks said Hasbro, a multinational company that owns trademarks for iconic products from Kenner, Milton Bradley, and Parker Brothers, is focused on reducing costs to increase growth rates and profitability for its consumer products business.
The WSJ notes that Hasbro's upcoming changes result from a challenging holiday season. In addition, concerns about inflation and a possible recession have hit multiple media and technology sectors, negatively affecting giant companies like Amazon, Salesforce, Google, and Microsoft.