Toy Giant Hasbro To Slash 15% Of Workforce On Weak Holiday-Quarter View As COO Nyman Exits

Hasbro, Inc HAS said it will eliminate nearly 15% of its global workforce in 2023 with the reductions to take place over the course of the next “several weeks.”

What Happened: Pawtucket, Rhode Island-headquartered Hasbro said the reductions coupled with ongoing systems and supply chain investments mean it's on track to achieve its goal of $250-300 million in annual run-rate cost savings by year-end of 2025.

The entertainment company also announced leadership and organizational changes on Thursday.

Eric Nyman, president and chief operating officer, is departing Hasbro. At this time, the Consumer Products business will report directly to the CEO,” said the company in a statement.

Why It Matters: Hasbro announced a preliminary fourth-quarter revenue of nearly $1.68 billion, down 17% on a year-over-year basis.

“Despite strong growth in Wizards of the Coast and Digital Gaming... our consumer products business underperformed in the fourth quarter against the backdrop of a challenging holiday consumer environment,” said CEO Chris Cocks.

Hasbro is set to report results on Feb. 6. In the third quarter the company’s earnings per share came in at $1.42 lower by 13.9% from the $1.65 Street estimate, according to data from Benzinga. 

Price Action: On Thursday, Hasbro shares fell 7.5% in the after-hours trading to $59 after closing 0.5% lower at $63.78 in the regular session, according to data from Benzinga Pro.

Read Next: Mattel's Many Growth Drivers In 2023 Make This Analyst Remain Bullish On The Stock

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Posted In: EarningsNewsGuidanceManagementAfter-Hours CenterChris CocksJob cutsToys
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