Even Hasbro Inc. has been significantly impacted by global economic volatility and intends to make significant changes. The company announced on Thursday that it would cut 15% of its employees, cutting about 1,000 jobs in the coming weeks. In addition, Hasbro’s president and chief operating officer, Eric Nyman, will reportedly leave the company.
The Wall Street Journal reported that Hasbro’s initial fourth-quarter results showed a 17% drop in sales. Adjusted earnings ranged between $1.29 and $1.31 per share, and shares fell 8.5% in after-hours trading. Hasbro has experienced an overall decline of 29% over the past 12 months.
WSJ quoted Chief Executive Chris Cocks as saying that Hasbro is “focused on implementing transformational changes aimed at substantially reducing costs and increasing our growth rates and profitability.”
Cocks said Hasbro, a multinational company that owns trademarks for iconic products from Kenner, Milton Bradley and Parker Brothers, is focusing on cutting costs to increase growth rates and profitability for its consumer products business.
The WSJ notes that Hasbro’s upcoming changes come as a result of a challenging holiday season. In addition, concerns about inflation and a possible recession have affected multiple media and technology sectors, negatively impacting major companies such as Amazon, Salesforce, Google and Microsoft.