Hasbro Cuts 3% of Global Workforce Amid Rising Tariff Costs
Toy seller Hasbro has reduced its global workforce by 3% in its latest cost-cutting effort, driven by higher U.S. tariffs on toys imported from China. The job cuts affect approximately 150 employees from the company's total global workforce of roughly 4,985 employees, according to its fiscal 2024 annual filing.
Adapting to Changing Trade Conditions
"We are aligning our structure with our long-term goals," Hasbro spokesperson Abby Hodes told Reuters. The company sources about half of its toys and games sold in the U.S. from China and has been accelerating efforts to diversify its sourcing and reduce exposure to the Chinese market.
Growing concerns about a global trade war following U.S. President Donald Trump's tariffs on trading partners have added pressure to the toy industry, which was already struggling with tepid demand in recent years.
Executive Response to Tariff Challenges
"Ultimately, tariffs translate into higher consumer prices, potential job losses as we reassess to absorb increased costs, and reduced profits for our shareholders," Hasbro's CEO Chris Cocks stated during an earnings call in April. The company also mentioned it was reevaluating logistics routes and manufacturing operations.
This latest round of cuts follows Hasbro's December 2023 announcement that it would eliminate 900 jobs globally, which came nearly a year after the company had already stated it would reduce its workforce by 15% due to weaker sales.
The Wall Street Journal first reported on the job cuts on Tuesday, noting that they are part of a multi-year restructuring plan at Hasbro. Despite these challenges, the Play-Doh maker beat estimates for quarterly results in April, as a strategic shift toward digital and licensed gaming businesses helped attract younger customers after struggling to generate demand for its traditional toy business for approximately three years.