Hasbro (NASDAQ:HAS), the gaming and entertainment conglomerate, said it will have to cut roughly 15% of its global workforce this year amid weakening demand for its toys and games.
The reductions will start to take effect within the next several weeks.
In a statement, Hasbro, behind toys such as Nerf and My Little Pony, said the staff culling along with ongoing systems and supply chain investments means the company is on track to deliver its goal of US$250mln and US$300mln in cost savings which should drive profitability.
The news comes on the back of its preliminary fourth quarter 2022 revenue, which was 17% down year-on-year to roughly US$1.6bn
Full-year revenue also fell by 9% to US$5.86bn.
"Despite strong growth in Wizards of the Coast and Digital Gaming, Hasbro Pulse, and our licensing business, our Consumer Products business underperformed in the fourth quarter against the backdrop of a challenging holiday consumer environment," said Chris Cocks, Hasbro chief executive officer.