Weak holiday sales are to blame.
Hasbro has joined other major companies in cutting personnel recently after holiday sales failed to meet expectations, despite revenue growth through Magic: The Gathering and Wizards of the Coast.
Hasbro and Wizards of the Coast have been making money off games like Magic: The Gathering, reporting revenues that were up by nine percent after the first quarter of 2022. But sales across all of Hasbro’s products were down over the holidays, resulting in 15 percent of the company’s global workforce getting laid off, according to CNBC.
The cutbacks will terminate around 1,000 jobs and potentially save Hasbro between $250 and $300 million by the end of 2025.
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, Hasbro’s chief executive officer Chris Cocks said.
Following the announcement, Hasbro stocks dropped once again, closing at $63.78 today. Hasbro stocks had also recently dropped after the Dungeons & Dragons community reacted to an adaption to the Wizards of the Coast Open Gaming License earlier this month.
Fourth-quarter overall sales are expected to be lower than anticipated for Hasbro. The company is adjusting to the projections and plans to focus more on gaming and digital, according to Cocks. What this means for D&D and MTG players, however, remains to be seen.