The Hasbro Layoffs

 

Toy companies are a large part of business. Children and adults are consumers of various toys and games. Adults are getting collectors items and children wants toys for general play. Hasbro did layoffs in 2023 which was an estimated 20% of the workforce. A total of 1,100 workers were left unemployed. The reason for this was the decline in sales. A total of 800 jobs were cut in 2023. This was a significant spike. Sales were doing better during the pandemic. Children were not in school and spending more time at home. Parents purchased more toys to keep children occupied. When the lockdowns were over, the purchase of Hasbro products decreased. The layoffs are expected to continue into 2025. Decline in sales cannot solely be blamed for layoffs. The CEO and management never offer to take pay cuts to retain employees. The reduction in workforce means those remaining will have to be more productive. There is no promise of an increase in pay. Layoffs are not an indication of a strong economy. Despite what politicians state, the data shows possible economic downturn. Hasbro, like other companies is experiencing the challenge of inflation. The rise in cost related to materials is going to increase prices of toys. Waves of layoffs are going to continue. Hasbro might not survive under these conditions. Hasbro did not make significant financial gains from lending its intellectual property to film. The only solution is to create better products or explore possibilities of electronic entertainment. CEO Chris Cocks is going to have to make adjustments and find a way to retain employees. Otherwise Hasbro will have to be sold or cease operations.