The toy and game company Hasbro announced in a company memo this week that it would be cutting 1,100 jobs, or about 20% of its workforce, as it faces soft holiday sales.
Hasbro CEO Chris Cocks shared the news with his employees in the memo, which was disclosed to the U.S. Securities and Exchange Commission in regulatory filings, saying that despite the company taking steps forward in 2023, the current market conditions are forcing them to take action.
“But the market headwinds we anticipated have proven to be stronger and more persistent than planned,” Cocks wrote. “While we’re confident in the future of Hasbro, the current environment demands that we do more, even if these choices are some of the hardest we have to make.”
In a memo, Cocks said the company expected a difficult first three quarters of this year but added that they also thought the fourth quarter would give some breathing room.
The move comes after the Rhode Island-based company cut 15% of its global workforce last January in a cost-saving move intended to save Hasbro up to $300 million over the next few years.
However, market conditions haven’t helped as American shopping habits have changed despite the holiday season.
The Associated Press reported that toy sales were down in the U.S. by 8% from January through August.