(Bloomberg) -- Hasbro Inc., one of the world’s largest toymakers, said it would cut 15% of its workforce, or about 1,000 jobs, after a disappointing holiday shopping season.
The Pawtucket, Rhode Island-based company also projected it would fall short of fourth-quarter adjusted profit estimates, making $1.29 to $1.31 a share compared to the $1.49 analysts were expecting. Sales for the fourth quarter are expected to be down 17% to $1.68 billion. The cuts will begin in the next few weeks, Hasbro said in a statement Thursday.
Although Hasbro’s digital gaming business, including the Dungeons & Dragons and Magic the Gathering games, performed well, its traditional toy business faltered. While the pandemic led to a sales boom with parents buying toys for kids stuck at home, demand has cooled more recently.
“Despite strong growth in Wizards of the Coast and Digital Gaming, Hasbro Pulse, and our licensing business, our Consumer Products business underperformed in the fourth quarter against the backdrop of a challenging holiday consumer environment,” said Chris Cocks, Hasbro’s chief executive officer.