PAWTUCKET, R.I. – Toymaker Hasbro has recently announced a significant round of layoffs, affecting over 1,000 employees just before the holiday season. This decision comes as the company grapples with weak sales in its toys and games division, prompting a move to cut nearly 20% of its workforce, amounting to around 1,100 staff. This follows an earlier round of 800 layoffs earlier in the year. Hasbro, the owner of popular brands such as Dungeons & Dragons, Transformers, Monopoly, Play-Doh, and My Little Pony, had approximately 6,500 employees as of the end of last year.

In an effort to save up to $300 million annually by 2025, Hasbro’s Chief Executive Officer, Chris Cocks, has laid out a plan to “focus on fewer, bigger brands; gaming; digital; and our rapidly growing direct to consumer and licensing businesses.” This shift in strategy comes as the company faces headwinds in the traditional toy sales market while experiencing growth in its digital and licensing ventures.

The decision to downsize was communicated to employees via an email from Cocks, who acknowledged the challenges faced by the company, particularly in the wake of the pandemic. He emphasized the need to modernize the organization and streamline operations to ensure profitability and set the stage for future growth. The layoffs are expected to be completed over the next 18 to 24 months.

One of Hasbro’s subsidiaries, Wizards of the Coast, has seen success in licensing its Dungeons & Dragons setting to the developer of the popular video game Baldur’s Gate 3. Despite this achievement, the company’s traditional toy sales continue to falter.

While expressing understanding of the difficulties this presents for affected employees, Hasbro is offering comprehensive packages, including job placement support, to assist in their transition. The news of the layoffs comes at a challenging time, with the holiday season in full swing.

In summary, Hasbro’s decision to lay off over 1,000 employees reflects the company’s response to declining sales in its traditional toy and games division. This move aligns with a broader strategy to refocus on digital and licensing ventures in an effort to drive future growth and profitability.