Hasbro Has Laid Off Over 1,000 People

Summary

Just before the holiday season,Hasbrohas announced that it will be laying off over 1,000 members of its staff. This adds to the multitude oflayoffs in the video game industrythis year, as more entertainment and gaming companies are reducing their work forces and shutting down entire departments.

Known for its expansive toy lines,Hasbrois the American conglomerate that holds the trademark and product rights to Kenner, Milton Bradley, Parker Brothers, Wizards of the Coast, and more. Hasbro made headlines this year after it licensed theDungeons and Dragonssetting to the hit gameBaldur’s Gate 3, though the success of that game has not been strong enough to compensate for a lack of profits in other Hasbro divisions.

Noting struggling toy sales,Hasbro CEO Chris Cocks informed employeesthat the company will be laying off more than 1,000 staff members over the next 18 to 24 months. Cocks noted that, while Hasbro saw some impressive profits in certain areas, other subsidiaries were under-performing. As such, Hasbro is seeking to shake things up structurally. The CEO explained that the company needs to ensure it has a “solid and profitable” foundation, which will require Hasbro to “get even leaner” in the form of trimming back its work force.

The announcement came as a major blow to roughly 1,100 employees, who were all notified via an email sent by Cocks. Major companies including Sony, Epic Games, Ubisoft, and Unity have all announcedmassive industry layoffs this year. With the holidays just around the corner, many Hasbro employees are forced to start job hunting.

While we see workforce reductions as a last resort, given the state of our business, it’s a lever we must pull to keep Hasbro healthy.

- Chris Cocks, Hasbro CEO

Layoffs Continue Across Industries In Spite of Profits

As big names across multiple industries report record profits for 2023, many are questioning the continued studio closures and employee layoffs. In spite of major titles and properties boosting sales by millions of dollars, executives frequently point to “disappointing returns” to justify cut-backs. Fans of gaming and entertainment have accused those in leadership positions of being greedy. Activision Blizzard was among the companies to let go staff members this year, and some were quick to point out past issues withBlizzard executives' bonuses after major layoffs. While records do indicate that Hasbro has seen a decline in toy sales after the post-COVID profit boom, its digital and licensing divisions show financial growth. Whether the staff members affected by the layoffs at Hasbro will find employment elsewhere in the industry remains to be seen.

Game and toy developers continue to feel the brunt of brutal business models. Executives often demand continuous exponential growth, which many cite as a key issue that has led to the string of layoffs and shutdowns this year. As reports ofbroken morale after layoffs at Bungiegrab the attention of employees elsewhere, many are now keeping an eye on Hasbro to see how the company moves forward with its “lean” restructuring.

Wizards of the Coast

Wizards of the Coast LLC is an American publisher of games, primarily based on fantasy and science fiction themes, and formerly an operator of retail stores for games. It is currently a subsidiary of Hasbro, which acquired the company in 1999.