In response to recent reports of impending layoffs, Hasbro said in a statement to Kidscreen that it plans to make “meaningful organizational changes” that will impact a single-digit percentage of its global workforce.
The statement, from Hasbro’s SVP of global communications Julie Duffy, said that “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.”
Hasbro will release its Q3 2018 financial results on October 22. The company reported a 7% decline in its second quarter net revenue (to the tune of US$904.5 million) and saw a double-digit decrease in its Q1 net revenue (down 16% to US$716.3 million).
Fellow toymaker Mattel announced it would cut more than 2,200 jobs after its worldwide net sales declined 14% to US$840.7 million in Q2 2018. The cuts, representing 22% of Mattel’s global non-manufacturing workforce, were primarily from back office and support functions.
Hasbro and Mattel have both attributed recent declines to the liquidation of Toys “R” Us in the US and multiple global markets. TRU began the process of shuttering its US operations in March, resulting in the closure of more than 700 remaining stores and leading to an estimated 30,000 job losses.