Pre-Christmas layoffs have not made much sense historically, but they have been seen as a way to pull the rubber band quickly. After all, why wait until after New Year to give someone the bad news if you can spoil their festive spirits?
This is the logic Hasbro has pursued as well, announcing that the company behind Play-Doh, Transformers and the all-time best-selling board game, Monopoly, is now axing 1,100 employees just in time for Christmas, The Wall Street Journal originally reported.
Monopoly Maker Hits a Tough Financial Spell
The layoffs are not the first time this year Hasbro engaged in staff trimming, with the toymaker previously cutting 800 jobs. The latest job cuts amount to 20% of the company’s staff, and the cumulative layoffs in 2023 already account for a fifth of the workforce the company entered the year.
Hasbro CEO Chris Cooks explained that the year was not easy and that there were challenging spells where sales simply did not meet targets, with 2024 proving to be an even more difficult year for the company. By making this hard decision, Cooks argued, Hasbro would be able to step on a firmer foothold in the new year.
According to The Guardian, a British media outlet, an email sent by the company’s chief executive said: “While we’re confident in the future of Hasbro, the current environment demands that we do more, even if these choices are some of the hardest, we have to make.”
Cooks was not trying to beat around the bush either, writing in the email, that there was no way to sugarcoat the issues the company was facing, or soften the blow to employee morale. The executive also said that the company had misjudged some of the opportunities in 2023.
“While we have made some important progress across our organization, the headwinds we saw through the first nine months of the year have continued into Holiday and are likely to persist into 2024,” Cooks explained.
Mattel Confirms Slump in Toys Market
These results contrast with the results posted by rival Mattel, which has so far managed to retain its workforce. However, Mattel was similarly sobering about the impact that the toy market had suffered. Admittedly, Mattel had been prompted by the Barbie movie which helped shore up sagging demand in the toy market.
Interestingly, both Mattel and Hasbro’s stock suffered on the news that the toy market is indeed slowing down. The recent results contrast with what Games Workshop has had to show for, as the miniatures maker actually reported an upsurge in sales and announced a £2,500 bonus for Christmas this year.