The Hasbro Inc. logo is seen on a toy for sale in a store in Manhattan, New York, on Nov. 16, 2021.
Andrew Kelly | Reuters
Toy seller Hasbro has cut 3% of its global workforce in its latest cost-cutting effort amid higher U.S. tariffs on toys from China.
The job cuts amount to about 150 employees. According to its fiscal 2024 annual filing, the company had roughly 4,985 employees globally.
“We are aligning our structure with our long-term goals,” Hasbro spokesperson Abby Hodes told Reuters.
Hasbro sources about half of its toys and games sold in the U.S. from China. The toymaker has been speeding up efforts to diversify sourcing and reduce exposure to China.
Swirling worries about a global trade war after U.S. President Donald Trump’s tariffs on trading partners have piled pressure on the toy industry that was already struggling with tepid demand.
“Ultimately, tariffs translate into higher consumer prices, potential job losses as we adjust to absorb increased costs, and reduced profits for our shareholders,” Hasbro’s CEO Chris Cocks had said during an earnings call in April.
The company also said it was reassessing logistics routes and manufacturing in the call.
In December 2023, Hasbro said it would cut 900 jobs globally, nearly a year after saying it would reduce 15% of its workforce due to weaker sales.
The Wall Street Journal first reported on the job cuts on Tuesday. The report added that the job cuts are part of a multi-year restructuring at Hasbro. The Play-Doh maker did not comment on the number of job cuts.
In April, Hasbro beat estimates for quarterly results, as a shift towards its digital and licensed gaming businesses helped attract younger customers after it has struggled to drum up demand for its toy business for about three years now.