(New York) The American toy manufacturer Hasbro plans to eliminate around 900 positions within two years, a decision which comes a few months after the announcement of an initial cut of 15% of its workforce, according to a document filed Monday with the policeman of the American Stock Exchange (SEC).
The group announced in January the elimination of around 1,000 positions in 2023 worldwide after lower-than-expected sales during the end-of-year holidays. It employed 6,490 people at the end of 2022, according to its annual report.
Following a “thorough review of the group’s cost structure and organization,” Hasbro decided to take “additional strategic steps to position the company for a future of growth,” the document said. emphasizing in particular that certain operational functions would be entrusted to subcontractors.
Hasbro posted a net loss of $171 million in the third quarter, driven in part by a sharp drop in business in its core business – traditional toys and games. A year earlier, it had made a profit of 129 million.
Like the second quarter, its “entertainment” branch suffered from the consequences of the Hollywood strike with turnover down 42% to 123 million.
Hasbro lowered its annual revenue forecast at the end of October, expecting a decline of 13 to 15% (instead of -3 to -6% previously).
The measures announced Monday are expected to result in gross savings of about $100 million per year.
Under its “Operational Excellence” strategic plan disclosed in October 2022, cost savings are now expected to reach $350 million to $400 million by the end of 2025, instead of the $250 million to $300 million expected at the time.
The first round of workforce reductions was expected to cost $94 million – severance pay in particular – and the second announced Monday was expected to cost around $40 million.
In electronic trading after the New York Stock Exchange closed, Hasbro shares fell 4.89%.
