Hasbro to cut 15% of workforce, warns of Q4 results hurt by ‘challenging holiday spending environment’

Hasbro, rocked by a series of economic and business shocks, plans to cut 15% of its global workforce, or about 1,000 jobs, this year.

In addition to these cuts, the company plans to unveil “a new organizational model, commercial alignment and leadership changes” during its quarterly conference call on February 16. Official. The consumer goods group that Nyman previously ran now reports directly to CEO Chris Cocks.

The toy maker and film and TV supplier hired Cocks as CEO about a year ago after the death of Brian Goldner, who weeks earlier had steered the Rhode Island company into a more prominent role in Hollywood. Under Goldner, Hasbro made deals with studios and streamers for adaptations of Transformers, GI Joe and many other properties. But during the pandemic and the resulting pressure on its supply chain and retail operations, Hasbro closed eOne’s film and television division and hastily moved to revamp operations.

Along with the layoff news, the company announced preliminary results for the fourth quarter and said final results would be released on February 16. Cocks indicated a “challenging environment for holiday shoppers” in the fourth quarter, saying the consumer goods business in particular underperformed. Total revenue will fall 17% year over year to $1.68 billion, with expected losses per share of between 93 cents and $1 — dramatically lower than Wall Street analysts’ forecasts.

The downsizing, which will begin in the coming weeks, along with ongoing investments in systems and supply chain, is expected to help the company achieve its goal of $250 million to $300 million in annual cost savings by 2025.

“We are focused on implementing transformative change aimed at significantly reducing costs and increasing our growth rates and profitability,” said Cocks. “While the full year 2022, and the fourth quarter in particular, was a challenging time for Hasbro, we are confident in our Blueprint 2.0 strategy unveiled in October with a focus on fewer, larger brands; games; Digital; and our rapidly growing direct-to-consumer and licensing businesses.”