Less than a month until Christmas, Hasbro announced it will cut nearly 20% of its workforce due to “market headwinds.” Hasbro touts a number of top IPs in its catalog including Magic: The Gathering, Transformers, Dungeons & Dragons, Nerf, Play-Doh, My Little Pony, Power Rangers, GI Joe, and Peppa Pig. Its partners include Marvel and Star Wars.
Transformers Legacy Evolution Core Class Optimus Prime Converting Action Figure
According to The Wall Street Journal’s Ben Glickman, Hasbro CEO Chris Cocks sent out an email to employees announcing the layoffs claiming that the company’s toy sales are less than expected and that the company has faced significant “market headwinds.” The company plans to cut 1,100 jobs. It previously laid off 800 employees earlier in the year. At the end of 2022, it employed around 6,500 people.
Cocks noted, “The market headwinds we anticipated have proven to be stronger and more persistent than planned.”
He added, “While we’re confident in the future of Hasbro, the current environment demands that we do more.”
Dungeons & Dragons Dicelings Green Dragon Collectible Action Figure
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The initial round of layoffs, which were announced at the beginning of the year, came after the company reported its revenues had declined 17% year over year to $1.68 billion.
The company’s President and Chief Operating Officer Eric Nyman departed the company during the first round of layoffs.
Back in January, Cocks said at the time, “We are focused on implementing transformational changes aimed at substantially reducing costs and increasing our growth rates and profitability.”
Key art for Baldur’s Gate III (2023), Larian Studios
Sales have not recovered this year with the company reporting in its Q3 report that revenue declined 10% despite growth from Wizards of the Coast and its Digital Gaming segment, which increased 40%. However, its overall Consumer Products division saw revenue decline 18%. Its Entertainment division’s revenue fell 42%.
Hasbro detailed the growth at Wizards of the Coast and Digital Gaming was due to the release of Baldur’s Gate III and Monopoly Go!. The company claimed the decline in Consumer Products was due to “exited licenses and softer category trends.”
The company blamed the writers and actors strikes for the decline in revenue from their Entertainment segment.
Hasbro also revealed that its Partner Brand revenue was down 35% “due to license exits, general industry softness, and lapping strong entertainment slate last year.”
Looking forward, Hasbro predicted a 13-15% revenue decline due to their outlook for Consumer Products and a continued decline in their Entertainment segment.
Dungeons & Dragons: Honor Among Thieves movie poster (2023), Paramount Pictures
While Hasbro does not specifically indicate whether or not there are any specific license partners that are performing poorly, a rumor from earlier in the year indicated the company had backed away from Star Wars and specifically their Ahsoka show.
Scooper WDW Pro detailed, “What I’m told is that Hasbro essentially took a pass and Disney allowed them to take a pass. Now folks we’re in rumor and speculation territory. We’ve got two sources reporting this to us, but rumor and speculation territory; I cannot corroborate this.”
He added, “Apparently, Hasbro was given the opportunity to do a wait and see model with Ahsoka and they are waiting and they are not seeing because I’m told you can pretty much count on nothing more coming out for the Christmas season.”
WDW Pro added, “My understanding there are Black Series action figures for Ahsoka but they are in an extremely limited run. That’s what one of the sources is telling us: extremely limited, bare minimum run. And it is essentially to satisfy collectors, but there’s no demand in terms f the young demographic.”
Ahsoka Tano (Rosario Dawson) with purrgil in a scene from Lucasfilm’s STAR WARS: AHSOKA, exclusively on Disney+. ©.
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In a previous rumor from September, Pro detailed that Star Wars toy sales were down 65%.
According to the source, Disney has experienced a significant decrease in their retail space within the top non-close out retailers in the U.S,” WDW Pro relayed. “Now, this is not just Star Wars this is everything Disney. Losing nearly 40% of their retail. This decrease affects all sections except baby and preschool categories.”
Disney expanded its retail space when it acquired Marvel and Star Wars due to the increased appeal to boys; however, the appeal to boys is largely gone and thus the retail has shrunk for Disney by 40%,” he continued.
(L-R): Sabine Wren (Natasha Liu Bordizzo), Ahsoka Tano (Rosario Dawson) and Ezra Bridger (Eman Esfandi) in Lucasfilm’s STAR WARS: AHSOKA, exclusively on Disney+. ©2023 Lucasfilm Ltd. & TM. All Rights Reserved.
Later in the video, WDW Pro shared, “Today, Lucasfilm does not compare its performance to both the original trilogy and prequel eras citing the differences in times. In other words, Lucasfilm does not permit comps when it comes to the eras pre-Disney to now. Today, Disney would drool on the floor for prequel metrics. Prequel metrics, not original.”
“And how much are we in a difference right now? According to the source, although I cannot fully corroborate this, but according to the source, full priced sales for Star Wars today are down 65%,” WDW Pro asserted.
“Then the source says, ‘One final point that really shows just how poorly Disney has performed… the best year at Kenner for Star Wars merchandise sales back during the time of the original trilogy would easily, adjusted for inflation, outperform all the merchandise sales of the Disney Star Wars era every single year Disney has owned it combined.’ That coming from one of our highest placed sources,” he concluded.
(L-R): Ezra Bridger (Eman Esfandi) and Chopper in Lucasfilm’s STAR WARS: AHSOKA, exclusively on Disney+. ©2023 Lucasfilm Ltd. & TM. All Rights Reserved
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