In 2023, Hasbro has implemented significant workforce reductions, cutting another 1,100 positions, representing a third of its employees
Toy manufacturer and video game maker Hasbro is set to reduce its workforce by nearly 20%, with around 1,100 employees facing job cuts. This move comes after five consecutive quarters of declining revenue, primarily attributed to the slump in Hasbro's toyline sales rather than its video games. Notably, the layoffs, occurring during the holiday season, are impacting teams associated with Dungeons & Dragons and Magic: The Gathering.
The digital era has posed challenges for Hasbro's toy portfolio, resulting in a year-long decline. This latest round of job cuts follows an earlier reduction of 800 positions in 2023. With this additional cut, almost a third of Hasbro's workforce will have been affected this year, marking a significant setback for the company.
Despite these challenges, some of Hasbro's projects have seen substantial success, such as Monopoly Go, emerging as one of 2023's breakout mobile games with an impressive $1 billion revenue in just seven months. This achievement rivals the rapid success of Pokemon Go, which has become one of the most significant mobile games of all time.
Hasbro, renowned for its toys under popular brands like Peppa Pig, My Little Pony, Nerf, and Transformers, also ventures into the digital realm. The company, along with its subsidiary Wizards of the Coast, houses several internal video game studios. Notable titles from their game library include Exodus and Baldur’s Gate 3, showcasing their adaptability to the evolving digital landscape.
However, the company's stocks have experienced a roughly 20% decline, and Wizards of the Coast is bearing the brunt of the layoffs, particularly in IT, game design, and artist departments. Hasbro's CEO, Chris Cocks, attributes the sales slump to the toy division rather than gaming. In a statement to Polygon, he emphasized the anticipation of challenging conditions in the toy market, driven by the transition from pandemic-driven highs.
While cost-cutting is not viewed as a long-term strategy, Cocks affirmed the company's commitment to growth and investment in various areas in 2024, acknowledging the need for adaptability in a changing market. Unfortunately, Hasbro is not alone in experiencing layoffs within the gaming industry in 2023, with companies like Unity, Fishlabs, Digic, and others also facing similar workforce reductions.
Source: adapted from an article by Aaron Astle, News Editor for PocketGamer.biz.