: Hasbro plans to lay off 15% of workforce and warns of holiday-season loss

by | Jan 26, 2023 | Stock Market

Hasbro Inc. late Thursday said it plans to lay off about 15% of its workforce and warned Wall Street to brace for a quarterly loss and a drop in revenue after a disappointing holiday season. Hasbro
reported preliminary losses between $1 a share and 93 cents a share for its fourth quarter, and an adjusted loss of between $1.29 a share and $1.31 a share in the period.

That runs counter to FactSet consensus of an adjusted profit of $1.52 a share for the quarter. The maker of My Little Pony, Baby Alive and other toy brands also reported preliminary fourth-quarter revenue of about $1.68 billion, down 17% year-over-year. That compares with FactSet consensus for revenue of $1.92 billion for the quarter. Hasbro stock fell more than 8% in the extended session after ending the regular trading day down 0.5%. Hasbro’s “consumer-products business underperformed in the fourth quarter against the backdrop of a challenging holiday consumer environment,” despite “strong growth” for digital gaming and other areas of the company, Chief Executive Chris Cocks said in a statement. Several retailers have posted lower-than-expected fourth-quarter sales as concerns about the economy simmer. Layoffs have also been widespread, with International Business Machines Corp.
and SAP
among the latest announcing cuts. The global job cuts will start in the next few weeks, Hasbro said. The toy maker employed 6,640 people worldwide as of December …

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