Toymaker Hasbro (HAS) is eliminating 1,000 jobs, or about 15% of its workforce, as sales continue to weaken.
The Pawtucket, Rhode Island-based company also said that it would fall short of fourth-quarter profit forecasts due to softer than expected sales during the December holiday shopping season.
Hasbro said its fourth quarter 2022 sales are expected to be down 17% to $1.68 billion U.S. The job cuts will begin in the next few weeks, Hasbro said in a written statement.
Although Hasbro’s digital gaming business, including Dungeons & Dragons and Magic the Gathering, continue to perform well, its traditional toy business has struggled in recent years.
The company lowered its 2022 revenue forecast at an investor day event this past October, even as management presented a bright future with growth coming from films, games and new online channels.
Changes to Hasbro’s business plan are expected to result in charges of approximately $300 million U.S. In addition, the company is projecting approximately $78 million U.S. in charges due to the announced workforce reduction.
As part of the changes, Hasbro President and Chief Operating Officer Eric Nyman is leaving the company. An exact date for his departure was not announced.
Hasbro’s stock has declined 28% over the past year to $63.78 U.S. per share.
