Hasbro lays off more employees due to sluggish toy sales
Hasbro Inc. has laid off about 900 employees as toy and game sales have slumped after booming during the pandemic.
The cost-cutting plan is expected to result in a “redistribution of people and resources,” including early retirement of some employees and layoffs over the next two years.
It said in a filing late Monday.
The Wall Street Journal (WSJ) reported the layoff plans Monday morning, citing a memo it had seen.
The creator of My Little Pony and Monopoly launched the plan in January and announced at the time that it had laid off about 15% of its staff.
The company said in a filing Monday that it has booked about $94 million in costs related to severance pay, stock compensation and employee benefits and expects to book another $40 million.
Last October, Hasbro lowered its third-quarter profit expectations and significantly lowered its full-year outlook, citing a “softer toy outlook.”
Hasbro and rival Mattel Inc. stock of MAT,
The toy industry, which has boomed during the pandemic, fell about 4% and 3%, respectively, in Monday’s extended session, a Wall Street Journal report said, noting that “early data points to another weak year.”
Last October, Mattel reported better-than-expected third-quarter earnings, thanks in large part to the wildly successful Barbie movies.
Mattel’s stock has risen 6% this year, compared with a 20% decline in Hasbro’s stock. However, both stocks underperformed the S&P 500 Index SPX.,
It will increase by about 20% in 2023.
Hasbro said in a February filing that it would have about 6,500 employees worldwide as of the end of 2022.
