Pawtucket, Rhode Island-based Hasbro, the world’s largest toy company, has announced that they are planning to trim less than 10 percent of its 5,000-employee workforce, leading to the layoffs of up to 500 workers.
According to a company spokesperson announcing organizational changes affecting a single-digit percentage of its global workforce, “As part of Hasbro’s ongoing transformation we continue to make meaningful organizational changes. While some of these changes are difficult, we must ensure we have the right teams in place with the right capabilities to lead the company into the future. We continue to add new capabilities based on our understanding of the consumer and how our retailers are going to market while evolving the way we organize our business across our Brand Blueprint.”
From the Third Quarter Disclosures…
“Based on organizational actions to ensure we have the right talent and capabilities to profitably grow going forward, we expect to record a charge of $50-$60 million in the fourth quarter of this year relating to severance. While this will result in $30-$40 million of annual savings by 2020, most importantly it will ensure we are well positioned with the right talent for success in the evolving marketplace we see ahead of us.
We remain focused on growing Hasbro over the long-term and continue investing in brands and entertainment to drive future performance. We have also returned $422 million in cash to shareholders thus far this year through our dividend and share repurchases.”
With a drastic restructuring of the retail toy industry, changes in consumer purchasing patterns, and more engagement with electronic rather than physical toys, layoffs should come as no surprise to employees of toy companies such as Hasbro and Mattel.
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