Hasbro (HAS) is laying off 1,100 workers right before Christmas as weak toy sales persist into the holiday shopping season.
Hasbro began 2023 with 6,300 employees. Earlier in the year, the company announced that it was letting go 800 staff as sales of its toys that include “Transformers,” “Nerf,” and “My Little Pony” slumped.
Hasbro warned in October that trouble was brewing at the company. In its recent quarterly earnings report, Hasbro lowered its full-year guidance, saying it expects a 15% sales decline.
The company said that its typically reliable brands such as Nerf are no longer selling as well and that overall sales had fallen 18% due to what management called “softer category trends.”
Rival toymaker Mattel (MAT) has also warned of soft sales despite the success of its summer film “Barbie,” which reignited interest in the doll.
Hasbro’s stock is down 5% on news of the latest layoffs. Year-to-date, the stock is down 21% and trading at $48.89 U.S. per share.
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