Hasbro to lay off 1,000 people; impact in R.I. unclear

HASBRO INC. announced Thursday that it is laying off 1,000 people, a process that is expected to start in several weeks. / PBN FILE PHOTO
HASBRO INC. announced Thursday that it is laying off 1,000 people, a process that is expected to start in several weeks. / PBN FILE PHOTO

PAWTUCKET – Toymaker Hasbro Inc. announced Thursday that it is cutting about 1,000 jobs as part of moves announced last year to save up to $300 million annually by 2025.

The Pawtucket-based company said the layoffs amount to 15% of its global full-time workforce, but it did not say where the job cuts would take place or if any would happen at its Rhode Island offices.

The announcement said the layoffs will start in the next several weeks.

Eric Nyman, president and chief operating officer, is also departing the company, Hasbro said in a statement.

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Nyman, who had worked at Hasbro since 2003, had been appointed president and chief operating officer in January 2022. He previously had been the chief consumer officer and chief operating officer of Hasbro’s consumer products division.

Hasbro CEO Chris Cocks said the toymaker will “focus on fewer, bigger brands; gaming; digital; and our rapidly growing direct to consumer and licensing businesses.”

“The elimination of these positions will impact many loyal Hasbro employees, and we do not undertake this process lightly,” Cocks said in a statement. “However, the changes are necessary to return our business to a competitive, industry-leading position and to provide the foundation for future success.”

In last year’s third quarter, Hasbro reported a 15% decline in revenue compared with the same period a year earlier.

Hasbro unveiled its corporate strategy Blueprint 2.0 on Oct. 4 when it cut its full-year revenue forecast. The initiative focuses investment on its most valuable franchises across toys, games, entertainment and licensing. The toy company plans to significantly increase strategic investment in key brands, focusing on gaming, direct to consumer, franchise brands and licensing. Priority brands for merchandise investment include Peppa Pig, Transformers, Dungeons & Dragons, Magic: The Gathering, and My Little Pony.
On Nov. 17, Hasbro announced it was selling part of its film and TV production and distribution unit, Entertainment One.

Hasbro bought Entertainment One for about $4 billion in 2019 to expand into the infant and preschool market by gaining access to popular TV shows such as “Peppa Pig” and “PJ Masks.”

Cocks said Hasbro’s consumer-products division performed poorly in the final three months of 2022 “against the backdrop of a challenging holiday consumer environment.”

He said, however, its role-playing game unit Wizards of the Coast, digital gaming, Hasbro Pulse and its licensing business posted strong fourth-quarter growth. Hasbro is due to report fourth-quarter and full-year results in mid-February.

Wizards of the Coast canceled at least five video game projects, Bloomberg News reported Jan. 4.

A company spokesman told Bloomberg fewer than 15 people at Wizards of the Coast will lose their jobs due to the cancellations and will be given a chance to apply for new roles within the company.

The company’s stock fell about 7% in extended trading after the layoffs announcement. The shares are down 29% in the last 12 months through the close of Thursday’s regular trading day on Wall Street.

It was a little more than a year ago Cocks was appointed CEO of Hasbro, replacing Brian Goldner, the longtime CEO who died of cancer in October 2021.

Cocks had been a top executive in Hasbro’s lucrative Wizards of the Coast and digital gaming division.

On June 8, Hasbro shareholders reelected all of the company’s 13 directors to its board, rejecting a slate of three nominees from activist investor Alta Fox Capital Management, which had waged a contentious, monthslong proxy battle for more influence over the company.

The Associated Press contributed to this report.

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