Toymaker Hasbro announced on Monday that it will lay off a large number of employees.
The company said on Monday that it will lay off up to 10% of its global workforce of 5,400 employees. It’s unclear right now exactly how many people will lose their jobs and the company stopped short of providing an exact number in an earnings release on Monday. The move, however, appears to be a direct response to the closure of Toys ‘R’ Us, a major contributor to Hasbro’s bottom line.
Indeed, Hasbro said on Monday that its revenues fell 12% to $1.6 billion in the previous quarter due to the Toys ‘R’ Us closure. The company was also forced to take an $18 million bad debt expense on its Toys ‘R’ Us relationship. Still, with a profit of $264 million in the third quarter, it’s financially sound.
The cuts signal the importance of the former big-box retailer to toy companies that have a harder time of getting their products in front of people online. It also suggests that Hasbro will need to slim down its operations to maintain its financial performance in a world where big-box toy retailers don’t exist.
Hasbro competitor Mattel announced in July that it would cut 2,220 jobs following the Toys ‘R’ Us closure.
Hasbro did not immediately respond to a Coins2Day request for comment on the number of cuts it plans to make.