Hasbro is laying off 1,100 staff after seeing its overall revenue decline by 10% over the past financial year.
👉 Background: Hasbro began in 1923 by selling textiles. Over the next two decades, they expanded to produce pencil cases and school supplies. Fast forward to today, Hasbro is the owner of toys and games like Monopoly, Power Rangers, My Little Pony, as well as Nerf.
👉 What happened: But 2023 hasn't been kind to Hasbro. It has seen its overall revenue decline by 10% over the past financial year. So now, Hasbro is laying off 1,100 staff because it's at a bit of a crossroads.
👉 What else: Its Wizards of the Coast division owns Dungeons & Dragons and Magic the Gathering, which saw revenue jumped over 40% year over year. So while their toy business is declining, the Wizards of the Coast has become an unexpected cash cow.
💡Businesses need to prioritise the things that actually make them money.
💡For many years, Hasbro has built its success off the back of its big name brands: Monopoly, My Little Pony, Transformers. But, these brands have fallen 18% over the past 12 months because of 'softer category trends'.
💡Rather than persisting with these brands, Hasbro is letting go a large chunk of the employees in these teams and refocusing their efforts on what actually is making Hasbro money.
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