Hasbro to lay off almost 1,000 workers, warns of weak holiday quarter results: Report

If there is one word that has defined the start of 2023, it’s layoffs. Major companies like Meta and Twitter have laid off thousands of employees. Google fired 12,000 employees a few days ago, and the impact of the news even forced CEO Sundar Pichai to hold a town hall meeting to justify the company’s decision. According to data by http://layoffs.fyi/, a total of 229 tech companies laid off 68,502 employees in January so far. Now, another multinational firm, Hasbro, is also set to reduce its workforce. Hasbro stated on 26 January that it will cut down nearly 1,000 employee positions or 15 percent of its workforce, as per a Reuters report. The multinational conglomerate also warned of weak holiday-quarter results. The toymaker will reveal its earnings on 16 February. The layoffs come as the toy maker aims to save between $250 million and $300 million per year by the end of 2025. Hasbro expects fourth-quarter revenue, which includes the holiday season, to touch $1.68 billion, a fall of 17 percent in comparison to the year-earlier period. According to data by Refinitiv, a revenue of $1.92 billion had been estimated by Hasbro during the quarter. The firm predicts that its revenue will reach $5.86 billion for the full year, down 9 percent against 2021. Chris Cocks, Chief Executive Officer (CEO) of Hasbro, said, “Despite strong growth in Wizards of the Coast and Digital Gaming, Hasbro Pulse, and our licensing business, our Consumer Products business underperformed in the fourth quarter against the backdrop of a challenging holiday consumer environment.” While the results are under par due to a downgrade from pandemic-fueled toy sales, inflation and high levels of inventory, the company expects it will bounce back soon. The toymaker is confident in its Blueprint 2.0 strategy, which focuses on fewer and bigger brands, gaming and its rapidly growing direct-to-consumer and licensing businesses. The company’s Wizards of the Coast division, which includes digital gaming, Dungeons and Dragons and Magic: The Gathering, will continue to be a bright spot, as per Hasbro. The corporation anticipates that the division is going to generate $339 million in revenue during the fourth quarter, an increase by 22 percent against the previous year. The firm estimates that the Wizards of the Coast division is going to reach $1.33 billion in revenue for the full year, an increase by 3 percent from 2021. Read all the Latest News, Trending News,  Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.