The US-American toy company Hasbro released bad news for its employees shortly before Christmas: Over 1000 positions are set to be cut. This corresponds to about 20 percent of the workforce and is already the second major job reduction this year.

For almost a hundred years, Hasbro has been known for classic games like Monopoly, Play-Doh, and My Little Pony. But despite the upcoming Christmas season, which usually means high season for the toy industry, the company is struggling with a decline in sales.

Further layoffs announced by Hasbro before the initial job cuts at the end of 2022.

Like many other toy manufacturers, Hasbro is also affected by the ongoing demand slump. While sales did increase during the pandemic, many companies had to lower prices to get rid of their goods during the last holiday season due to weak demand. This situation continues, as data shows: toy sales in the United States have decreased by eight percent in the first eight months of the year.

Hasbro CEO Chris Cocks explained in an internal communication to employees that the expected headwinds in the market are stronger and more persistent than anticipated. Despite making progress, this year's holiday season is challenging and the trend is likely to continue until 2024. As measures to counteract this, the company plans to focus on larger brands, digital products, and the growing direct sales and licensing business.

Hasbro was founded in 1923 and currently employs 6490 workers. The announced layoffs can be seen as part of the comprehensive company strategy to adapt to the current market conditions and secure the long-term future of the company.