Hasbro is cutting 1,100 jobs as toy sales remain weak

Hasbro, the toy maker behind popular brands such as Peppa Pig, Transformers and Magic: The Gathering, said Monday it would cut about 1,110 jobs, or nearly 17 percent of its workforce, as the company continued to struggle with weak sales.

Hasbro CEO Chris Cocks said in a memo to staff Monday that “the market headwinds we expected have proven stronger and more persistent than planned.”

The layoffs, announced during the crucial holiday shopping season, follow a reduction of 800 jobs at the company earlier this year; The toymaker said it expected the majority of the latest cuts to take place over the next six months, with the remainder over the next year.

“We expected the first three quarters to be challenging, especially in toys, where the market is coming off historic pandemic-driven highs,” Mr. Cocks said in the memo. “While we have made significant progress across our organization, the headwinds we saw in the first nine months of the year have continued into Holiday and are likely to persist into 2024.”

In his third quarter income In the report, the company had indicated that soft toy sales would dampen its prospects, noting that overall sales were expected to decline by about 13 to 15 percent this year.

Shares of the Pawtucket, RI-based company fell about 5.7 percent in after-hours trading. The stock, which closed Monday at $48.89, is down nearly 19 percent in the past year.

Mr. Cocks also said the company would continue to explore its options to “reduce its real estate footprint” and close its Providence, RI, office after its lease expires in January 2025.