Hasbro has now confirmed it will lay off a mid single digit percentage of its 5,000 estimated employees amid a recently announced $50-60 million restructuring plan.
The move was confirmed by a Hasbro spokesperson in a conversation with Business Insider.
It arrives in the same week that the global toymaker revealed its Q3 2018 results to be reeling from the aftermath of the demise of Toys R Us. Sales were down seven per cent in the US and Canada.
“As part of Hasbro’s ongoing transformation, we continue to make meaningful organisational changes,” said Julie Duffy, senior vice president for global communications at Hasbro.
“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.”
Following the liquidation of Toys R Us earlier this year, the likes of Hasbro and Mattel have had to scramble to find new avenues for selling toys. Walmart and Target usually buy toys later in the year than Toys R Us did, which caused a crunch at the end of the third quarter. Hasbro CEO Brian Goldner said in a conference call discussing the earnings that the company couldn’t meet all of the demand.
Meanwhile, Mattel has said it will reduce its global workforce by 2,200 jobs, blaming bad results on lost sales from Toys R Us’s closure. Mattel will announce its own third-quarter earning this Thursday.