We think of toy companies as more or less indestructible. Many — like Hasbro — have been around for eons. Or in the case of Hasbro, close to 100 years. But toys aren’t being sold these days like toys in the past.
Inflation? Likely. Blame Amazon? Not likely the cause since toys are sold there. Blame COVID? Maybe. However, during COVID toy sales skyrocketed as parents desperately looked for ways to keep their practically-grounded kids entertained.
And then there’s the COVID rebound. Kids went back to school and, since more entertainment became not all that necessary, toys weren’t that needed.
Excuses can be listed on and on but here’s the bottom-line, toys aren’t selling like they used to sell. Thus, Hasbro — and other toy manufacturers — are shedding workers faster than Santa’s sleigh tosses off snowflakes.
Hasbro — who famously bought Monopoly from Parker Brothers, and the manufacturer of Play-Doh and toys around My Little Pony — announced this week that it will lay off another 1,100 jobs on top of the 800 it cut so far in 2023. The 1,100 represents about 20% of the company’s workforce.
At the end of 2022, Hasbro said it had 6,480 employees. Subtract 1,900 and the new total is something like 4,580. Whatever the total number, Hasbro CEO Chris Cocks said the layoffs are designed to save the company $300 million a year by 2025.
“The market headwinds we anticipated have proven to be stronger and more persistent than planned,” Cocks said. “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.”
In the meantime, Cocks said Hasbro will focus on making fewer toys, and those the company makes will be bigger brand names, and it will do more gaming and digital toys in the future. The company will also tap into the online business and work more toward a direct-to-consumer business and to licensing businesses.
Source link: MSN — https://bit.ly/41iaeQq