Hasbro to Cut Jobs, Grappling With Toys ‘R’ Us Fallout and Sales Declines

(Bloomberg) -- Hasbro Inc., battling through competition and toy-industry disruption, announced on Friday that it’s reducing its workforce. The cuts will be in the “single digit percentage,” the toymaker said in a statement, without disclosing more details.

Key Insights

• Hasbro reports earnings on Monday, so the announcement lets the Pawtucket, Rhode Island-based company clear the deck beforehand.
• The company has been hit this year by the liquidation of Toys “R” Us Inc. -- one of its top customers. Sales declined for the past three quarters and are expected to fall again.
• The toy industry has also been contending with the rise of e-commerce. That’s forced companies to re-think distribution models.
• Hasbro had 5,400 employees at the end of 2017.

Market Reaction

• Hasbro fell as much as 2.4 percent to $96.17 on the news, which was first reported by the Wall Street Journal. Mattel Inc. also slipped, reversing earlier gains.

To contact the reporter on this story: Matt Townsend in New York at mtownsend9@bloomberg.net

To contact the editors responsible for this story: Anne Riley Moffat at ariley17@bloomberg.net, Jonathan Roeder, Cecile Daurat

©2018 Bloomberg L.P.