Hasbro Inc (NASDAQ:HAS) has laid off about 3% of its workforce as part of a cost-cutting and restructuring initiative driven by higher costs due to tariffs.
The company sources about half of its US toy and game inventory from China, making it exposed to higher costs under increased tariffs imposed by the Trump administration.
The layoffs will impact about 150 employees across various departments and regions, according to a Wall Street Journal report.
This reportedly includes a small percentage of jobs out of Hasbro’s Rhode Island headquarters, with the company also considering a potential relocation to Boston.
The headcount reduction is part of a broader multi-year restructuring plan aimed at stabilizing operations and aligning the company's structure with its long-term goals amid ongoing trade tensions and a slump in toy demand, sources told the WSJ.
Hasbro CEO Chris Cocks earlier this year warned that tariffs could lead to job cuts, higher consumer prices, and pressure on profit margins. As such, the company has been fast-tracking efforts to diversify its manufacturing footprint to reduce its dependency on China.
Shares of Hasbro were little changed in early trade at about $68 per share, having gained more than 21% in the year to date.