“We anticipated the first three quarters to be challenging, particularly in [the division of] Toys, where the market is coming off historic, pandemic-driven highs,” Cocks said. But “the headwinds we saw through the first nine months of the year … are likely to persist into 2024,” he added.
The majority of employees whose roles will be affected will be notified over the next six months, he said. The new job cuts are in addition to the 800 employees Hasbro has already laid off this year, according to the memo.
The company announced in January that it would slash 15 percent of its workforce in a bid to yield up to $300 million in savings by the end of 2025. At the end of 2022, Hasbro had 6,490 employees worldwide, according to a regulatory filing.
To further cut costs, Hasbro is also exiting its office in Providence, R.I., which “is currently not being used to its full capacity,” once the lease ends in January, Cocks said in the memo.
From the July-September 2022 quarter, Hasbro has reported consecutive year-on-year revenue declines of between 10 and 17 percent.