Hasbro Toys Crumbling After Losses, Layoffs, & Shift Towards Digital

Hasbro’s recent Q3 earnings report has revealed a 15% decline in revenue, significant layoffs, and a shift away from traditional toy production towards digital and licensing strategies. The company, known for its iconic toy lines such as Transformers and My Little Pony, is now shifting its focusing on digital play, AI markets, and outsourcing its toy production to other companies.

Despite a 5% increase in Transformers sales, the overall financial performance of Hasbro has led to a strategic pivot under CEO Chris Cox. The company is now considering relocating to Massachusetts and laying off dozens of employees as part of its turnaround plan. According to an internal email, fewer than 100 employees will be affected, with half based in Rhode Island.

Related Hasbro In Big Trouble: Toymaker Cutting Another 20% of Workforce

It was only two years ago that Victor James of Bleeding Fool reported how Hasbro was cutting 1,100 more jobs, or 20% of their workforce, after having laid off 800 employees earlier in 2022. The company’s in revenue is primarily being driven by the sale of eOne’s and TV businesses to Lionsgate, resulting in a 15% decrease in pro forma entertainment earnings. However, the company now expects fiscal year 2024 to see improvements in its earnings before interest, taxes, depreciation, and amortization, ranging from $975 million to $1.025 billion, after slashing more workforce.

The shift away from traditional toy manufacturing towards digital ventures and licensing strategies raises concerns about Hasbro’s future identity as a toy company. As the company struggles financially and undergoes significant changes post-Brian Goldner’s death, it remains to be seen how these strategic pivots will impact Hasbro’s market performance and customer loyalty. I don’t see them coming back from these losses.

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