Hasbro announces approximately 15pc global staff reduction
Business
Transformers toy manufacturer’s shares drop 7% after 1,000 full-time employment removal announcement
(Reuters) - In response to weaker demand for its toys and games, Hasbro announced that it will reduce approximately 15 percent of its global staff this year. It also predicted holiday-quarter profits significantly below Wall Street projections.
After the business announced it will remove roughly 1,000 full-time employment internationally in an effort to reduce expenses, shares of the Transformers toy manufacturer dropped almost 7% to $59.50 in extended trade.
Competitor Mattel Inc. shares also decreased by around 2%. The layoffs, according to Hasbro, will begin to take effect in the coming weeks and are "essential to return our business to a competitive, industry-leading position."
According to Hasbro, fourth-quarter revenue was at $1.68 billion, a 17% decrease from the same period last year. Refinitiv IBES statistics show that analysts predict revenues of $1.92 billion on average.
On February 16, when it is scheduled to release results for the holiday quarter, the business projected quarterly adjusted profits per share of $1.29 to $1.31, far less than the $1.48 analysts had predicted.
Eric Nyman, president and chief operations officer, was also leaving the business, according to Hasbro, who also mentioned organisational changes.
