American toy and video game maker Hasbro announced this Thursday that it will lay off some 1,000 employees, 15% of its global workforce, after registering losses in the fourth quarter of 2022.
In a statement, the company said the layoffs will take place in the coming weeks as part of a cost-cutting plan and acknowledged that the year, and particularly the fourth quarter, have been “complicated”.
One of the outgoing employees, after 18 years, is the company’s president and chief operating officer, Eric Nyman, indicates the note.
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“Despite strong growth from Wizards of the Coast and Digital Gaming, Hasbro Pulse and our licensing business, the consumer products division underperformed in the fourth quarter against the backdrop of a challenging consumer environment over the holiday season. ”, said Chris Cocks, CEO of Hasbro. According to Bloomberg.
Hasbro -owner of brands such as Monopoly, Mister Potato or Trivial Pursuit-, which only disclosed certain preliminary data, said that in the fourth quarter it had a loss of between 93 cents and 1 dollar per share, with a drop in revenue of 17%, to 1,680 million.
The only segment that grew was digital games including Wizards of the Coastwith income of 339 million (22% more) and the worst unemployed was consumer products, which entered 1,000 million (26% less).
Hasbro CEO Chris Cocks attributed the latter division’s poor performance to lower-than-expected sales in the US holiday season, which spans November and December and has been weighed down by inflation.
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In the year as a whole, the company maintained earnings of between 1.40 and 1.46 dollars per share, despite a 9% drop in billing, up to 5.860 million.
The results, released at Wall Street close, were poorly received in subsequent electronic trading with Hasbro shares down 6.7%. In the last year, it has lost almost 28% of its capitalization.
With information from EFE and Bloomberg.
Source: Gestion
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