Hasbro cuts 1,100 jobs, or 20% of its workforce, prompted by the ongoing malaise in the toy business

NEW YORK — Toy maker Hasbro said Monday it is cutting about 1,100 jobs, or 20% of its workforce, as unrest in the toy business spreads through another holiday shopping season.

The nearly century-old Rhode Island-based company behind Monopoly, Play-Doh and My Little Pony toys disclosed the layoffs in a memo to employees published in a regulatory filing. The Wall Street Journal was the first to report the news.

The company said the reductions are in addition to the 800 job cuts that have been made so far in 2023 as part of measures announced last year to save up to $300 million annually by 2025. By the end of 2022, the company said it had 6,490 employees.

Like many toy companies, Hasbro is battling a slowdown in sales after a surge during pandemic lockdowns, when parents splurged on toys to keep their children busy. Last holiday season, many toy companies had to cut prices to get rid of their merchandise due to weak demand. And the challenges have continued. U.S. toy sales fell 8% between January and August, according to the most recent data from Circana.

“The market headwinds we anticipated have proven to be stronger and more persistent than planned,” Hasbro CEO Chris Cocks wrote in the memo. “While we have made some important progress across our organization, the headwinds we saw during the first nine months of the year have continued into the holidays and are likely to persist into 2024.”

Cocks had said the toymaker “will focus on fewer, larger brands; gaming; digital; and our rapid growth of direct-to-consumer and licensing businesses.”

Shares of Hasbro Inc. fell nearly 6% in after-market trading on Monday.