Hasbro announced last week that it was reorganizing. The announcement gave 1,000 as the number of jobs to be eliminated. That amounts to 15% of the company’s workforce. It did not, however, indicate who or where the layoffs will take place.
That lack of information has to have created angst among those working for the company. It must be uncomfortable for them not knowing where the layoffs will take place and whether they will be one of those the company will ask to leave.
There are, however, some hints as to how the reorganization will shape up. According to the Providence Business News, the layoffs will have little impact on those who work in Rhode Island, Hasbro’s headquarters state.
Here is a quote from Providence Business News, “Hasbro: ‘Small percentage’ of R.I. employees will be laid off.”
Hasbro Inc. spokesperson Allison McEneaney told Providence Business News Friday that only “a small percentage” of the approximately 1,000 employees the company will soon begin laying off work in Rhode Island.
McEneaney declined to identify the number of local employees who will lose their jobs, adding the layoffs will start to take effect within the next several weeks. The company employs approximately 1,400 in Rhode Island.“Hasbro: ‘Small percentage’ of R.I. employees will be laid off,” Providence Business News
Another clue can be found in a report from BMO Capital’s Gerrick Johnson, entitled, “Tragic the Gathering g: 4Q Pre-Announcement, Reorganization, and Layoffs.”
We suspect the majority of the cuts are occurring in its Consumer Products segment as it outsources smaller, underperforming, or unprofitable brands to other, smaller toy companies and pivots to focus on fewer, bigger brands. Eric Nyman, president and COO, will be departing. With CFO Deb Thomas retiring, there are very few executives left from the Goldner Golden Era.Tragic the Gathering g: 4Q Pre-Announcement, Reorganization, and Layoffs.”
The toy industry is a family. What happens at Hasbro impacts the emotions of the entire industry. Most of us in the toy industry have friends who work at Hasbro. We will be thinking about them as we wait for clarity on where the layoffs will occur.