Hasbro Is Laying Off 1,000 Workers To Cut Costs
Despite admitting the company had "strong growth" across Wizards of the Coast, Digital Gaming, Hasbro Pulse, and its licensing business, Hasbro has announced that it will be laying off 15 percent of its workforce in an effort to cut down on costs and "return our business to a competitive, industry-leading position." Up to 1,000 workers will be affected by these layoffs, which have apparently been caused by Hasbro's Consumer Products business underperforming over the holiday period.
According to Hasbro chief executive officer Chris Cocks, the layoff will allow the company to implement a "new organizational model, commercial alignment, and leadership changes," starting with Hasbro's president and chief operating officer Eric Nyman who is also on the way out. In a statement released on the Hasbro website, Cocks thanked Nyman for his time at the company, while the Consumer Products business will now report directly to Cocks himself.
Regarding the worker layoffs, Cocks claims that he does not take the move "lightly," but states that they were necessary "to provide the foundation for future success" for the company:
"The elimination of these positions will impact many loyal Hasbro employees, and we do not undertake this process lightly," says Cocks. "However, the changes are necessary to return our business to a competitive, industry-leading position and to provide the foundation for future success."
Given that it's the Consumer Products business that has underperformed, it's unlikely that these layoffs will affect Wizards of the Coast, but it's still alarming for a company that has been mired in controversy for a while. Not only did it manage to decrease the value of its own stock due to fatigue in the Magic: The Gathering community, but Dungeons & Dragons fans are still wary of its attempted changes to the Open Games License. It's yet another reminder that Hasbro isn't doing too great at the minute, and now 1,000 workers have lost their jobs because of its continued mistakes.
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