Hasbro, considered one of the biggest toy manufacturers in the world, has announced a massive round of layoffs only a couple of weeks away from Christmas. CEO Chris Cocks himself made the announcement via an internal company memo.
In the memo, he spoke of laying off “approximately 1,100 colleagues globally in addition to the roughly 800 reductions already taken.” Hasbro already had a round of layoffs in January of this year. In a relatively short amount of time, the total will reach a staggering 1,900 eliminated positions within the company.
According to PCGamer, Chris Cocks defends the company’s extreme measures by declaring, “I know this news is especially difficult during the holiday season, there is no sugar-coating how hard this is, particularly for the employees directly affected. But it is a lever we must pull to keep Hasbro healthy.” He continues to explain, “To position Hasbro for growth, we must first make sure our foundation is solid and profitable. To do that, we need to modernize our organization and get even leaner. We decided to communicate now so people have time to plan and process the changes.”
Although Wizards of the Coast has been hugely profitable for Hasbro, a downward spiral in overall revenue in the last five consecutive quarters has forced the company to downsize. Hasbro’s Chief Financial Officer Gina Goetter communicated in a statement in October 2023 that the company was “on track to meet our long-term gross cost savings goals earlier than expected.” Yet, in spite of its efforts, declines in profits persisted throughout 2023.
Despite everything, CEO Chris Cocks continues to enjoy hefty bonuses, as shown by the company’s 8-K form from the U.S. Securities and Exchange Commission revealed by Dicebreaker. Disclosed in the document is Mr. Cocks’ $9.4 million compensation fee, which doesn’t include his $1.5 million salary. The article indicates that there have been no reductions in the levels of executive pay, bonuses, or other forms of additional remuneration.
The silver lining of this news is that the employees won’t be let go all at once. According to the memo, “The majority of the notifications will happen over the next six months, with the balance occurring over the next year as we tackle the remaining work on our organizational model.” Furthermore, the CEO states that employees are eligible for “comprehensive packages including job placement support to assist in their transition.” Most employees will likely not be let go until 2024 to give them some time to explore new opportunities.
At the time of writing, there has been no statement concerning Wizards of the Coast and its staff. But, considering it is one of the most profitable assets in Hasbro’s possession, it is unlikely it will see significant, if any, downsizing.
