This has been a rough year for the toy industry, and it appears Hasbro is the next company to make layoffs.
When a giant retailer like Toys "R" Us shuts down there are bound to be some ripple effects, and companies like Mattel and Hasbro are feeling those directly. On Wednesday Hasbro issued a statement detailing some difficult changes ahead for the company, and while they won't use the term layoff at the moment, they did say those changes would affect "a single-digit percentage" of Hasbro's global workforce, which currently stands at 5000 employees (via Providence Journal).
“As part of Hasbro’s ongoing transformation we continue to make meaningful organizational changes,” said an emailed statement from company spokeswoman Julie Duffy. “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. We continue to add new capabilities based on our understanding of the consumer and how our retailers are going to market while evolving the way we organize our business across our Brand Blueprint.”
As or right now
When asked about those changes to "a single-digit percentage", Hasbro did say that any changes coming aren't related to the recently undertaken investigation by investors at Hasbro. Pomerantz LLP is currently investigating claims that officers and directors at the company have "engaged in securities fraud or other unlawful business practices". "The claims have no merit and we intend to vigorously defend against them," Duffy said.
We'll likely learn more on Monday when Hasbro releases their third-quarter numbers to investors. In the meantime, we hope that the changes signify something else as opposed to layoffs, but if they do we hope those affected will quickly find other work.
Recently it does look like Toys "R" Us and other stores like KB Toys are making a comeback, but those companies won't be a full strength this Holiday season, so companies like Mattel and Hasbro are going to have to weather the storm for a bit.