Shares of toy company Hasbro tumbled more than 4% in after-hours trading following reports of significant workforce reductions due to weak sales. Even with the holiday sales season approaching, the company has struggled to maintain solid revenue from its toys and games.
Notably, rival toy maker Mattel has also seen a drop of 3.2% in its stock value during late trading. This indicates a broader trend within the industry.
The job cuts at Hasbro will affect roughly 1,100 employees, as reported in an internal communication cited by The Wall Street Journal. Hasbro CEO, Chris Cocks, admitted that toy sales for the first three quarters of 2023 were weaker than anticipated. This decline is compared to the unprecedented highs experienced during the pandemic. Throughout the year, Hasbro has already let go of hundreds of workers.
Hasbro’s performance over the year has been disappointing. In October, the company revised its sales projections, anticipating a drop of up to 15%. This is a larger decline than their previous estimate of 3% to 5%. The third quarter saw a 10% decrease in sales and marked the fourth consecutive quarterly loss for the company.
Given the limited information available currently, Hasbro was unavailable for immediate comment on these recent developments.
Hasbro is known for its popular brands such as Nerf, Play-Doh, Power Rangers, and Dungeons & Dragons. Their struggle to retain market share speaks to the challenges faced by the entire toy industry.
