Monopoly maker Hasbro cuts 3% of total workforce amid higher tariff costs

[BENGALURU] Hasbro has cut 3 per cent of its global workforce in its latest effort to shave costs as it looks to tackle higher tariffs on toys majorly from China.

The job cuts amount to about 150 employees. According to its fiscal 2024 annual filing, the company had roughly 4,985 employees globally.

“We are aligning our structure with our long-term goals,” Hasbro spokesperson Abby Hodes said.

Hasbro sources about half of its toys and games sold in the US from China. The toymaker has been speeding up efforts to diversify sourcing and reduce exposure to China.

Swirling worries about a global trade war after US President Donald Trump’s tariffs on trading partners have piled pressure on the toy industry that was already struggling with tepid demand.

“Ultimately, tariffs translate into higher consumer prices, potential job losses as we adjust to absorb increased costs, and reduced profits for our shareholders,” Hasbro’s CEO Chris Cocks had said during an earnings call in April.

The company also said it was reassessing logistics routes and manufacturing in the call.

In December 2023, Hasbro said it would cut 900 jobs globally, nearly a year after saying it would reduce 15 per cent of its workforce due to weaker sales.

The Wall Street Journal first reported on the job cuts on Tuesday (Jun 17). The report added that the job cuts are part of a multi-year restructuring at Hasbro. The Play-Doh maker did not comment on the number of job cuts.

In April, Hasbro beat estimates for quarterly results, as a shift towards its digital and licensed gaming businesses helped attract younger customers after it has struggled to drum up demand for its toy business for about three years now. REUTERS