Hasbro said on Monday it would cut another 900 jobs globally, nearly a year after the toymaker announced it would reduce 15 per cent of its workforce amid weaker sales.
Hasbro had said in January it would cut about 1,000 full-time positions. On Monday, the company said it had already cut 800 jobs.
Hasbro had employed about 6,490 people worldwide at the end of 2022, with eight per cent of them in Canada, according to a regulatory filing. The job cuts announced on Monday take the total layoffs to 1,900, or 29 per cent of its workforce.
A spokesperson for the company declined to share with CBC News whether any of the company’s Canadian operations or locations would be impacted by the layoffs.
“Out of respect for employees, we are not sharing further specifics at this time,” the spokesperson said.
Shares of the company were down about six per cent in extended trading, while Barbie maker Mattel also slipped more than one per cent.
“Market headwinds we anticipated have proven to be stronger and more persistent than planned,” CEO Chris Cocks said in an employee memo on Monday that was obtained by CBC News.
Consumers worldwide have struggled to cope with persistently high inflation, forcing them to cut back on discretionary spending, including toys, and focus more on buying essentials.
In October, the company joined rival Mattel in warning of a weak holiday season and indicating that consumers were being frugal heading into the most important period for retailers.
“The headwinds we saw through the first nine months of the year have continued into the holidays and are likely to persist into 2024,” Cocks added.
The maker of Transformers action figures and Monopoly said on Monday that the majority of its employees would be notified over the next six months, while the balance would occur over the next year.
Hasbro also said its Providence, R.I., office was not being used to its full capacity and the company had decided to exit it at the end of its lease term in January 2025.
Hasbro now expects to deliver gross annual run-rate cost savings of about $350 million to $400 million US by the end of 2025, up from its previous estimate of $250 million to $300 million.
The company sold its eOne television and movie business to Lionsgate in an approximately $500-million US deal in August, after having paid $4 billion for the Toronto company four years ago.