American toymaker Hasbro has announced it is axing around 1,100 jobs, or 20% of its workforce, as a slowdown in sales extends into another major shopping season.
The company behind Monopoly, Play-Doh and My Little Pony disclosed the cuts in a memo to employees published in a regulatory filing. The news was first reported in the Wall Street Journal.
Hasbro, which is nearly 100 years old and based in Rhode Island, said the job cuts are on top of 800 already made in 2023 as part of moves announced last year to save up to 300 million US dollars (£239 million) annually by 2025.
At the end of 2022, the company said it had 6,490 employees.
Like many toy companies, Hasbro is struggling with a slowdown in sales after a surge during pandemic lockdowns when parents were splashing out on toys to keep their children occupied.
Last festive season, many toy companies had to slash prices to get rid of merchandise due to weak demand, and those challenges have continued.
Toy sales in the US were down 8% between January and August, based on Circana’s most recent data.
Hasbro chief executive Chris Cocks wrote in the memo: “The market headwinds we anticipated have proven to be stronger and more persistent than planned.
“While we have made some important progress across our organisation, the headwinds we saw through the first nine months of the year have continued into holiday and are likely to persist into 2024.”
Mr Cocks said the toymaker will “focus on fewer, bigger brands, gaming, digital, and our rapidly growing direct to consumer and licensing businesses”,
Shares in Hasbro Inc fell almost 6% in after-market trading on Monday.
