Hasbro
said Thursday it will cut 15% of its workforce starting in the next few weeks as the toy maker slashes costs to face tough economic conditions.
The cuts add up to about 1,000 jobs.
Hasbro
(ticker: HAS) estimated a 17% drop in fourth-quarter revenue, to around $1.68 billion, which is far below the $1.92 billion consensus of analysts as tracked by
FactSet.
It also forecast adjusted earnings per share of $1.29 to $1.31, compared with the $1.52 expected.
For the full year 2022, it sees preliminary revenue of about $5.86 billion, down 9% from the year before. Analysts expected $6.1 billion.
Hasbro
shares fell 7% in late trading. They are up 4.5% so far this year.
CEO Chris Cocks said that its consumer products division underperformed in the fourth quarter amid a challenging holiday environment for consumers and despite growth in its Wizards of the Coast and digital gaming, Hasbro Pulse, and its licensing business.
Hasbro also said Eric Nyman, president and chief operating officer, would leave the company and the consumer products division would report directly to the CEO.
The actions put it on track for $250 million to $300 million of annual cost savings by the end of 2025, Hasbro said.
In October the company unveiled a new strategy it called Blueprint 2.0 that puts a focus on fewer, bigger brands; and its gaming, digital, and direct to consumer and licensing businesses.
“The elimination of these positions will impact many loyal Hasbro employees, and we do not undertake this process lightly,” Cocks said. “However, the changes are necessary to return our business to a competitive, industry-leading position and to provide the foundation for future success.”
Write to Liz Moyer at liz.moyer@barrons.com
Credit: marketwatch.com