Hasbro, which has been reeling from a series of economic and corporate shocks, plans to cut 15% of its global workforce this year, or about 1,000 positions.
In addition to those reductions, the company plans to unveil “a new organizational model, commercial alignment, and leadership changes” during its quarterly earnings call on February 16. One preliminary exec move announced today was the departure of Eric Nyman as president and chief operating officer. The consumer products group Nyman used to oversee will now report directly to CEO Chris Cocks.
The toy maker and film and TV supplier elevated Cocks to CEO about a year ago following the death weeks earlier of Brian Goldner, who had steered the Rhode Island company to a more high-profile role in Hollywood. Under Goldner, Hasbro reached deals with studios and streamers for adaptations of Transformers, G.I. Joe and many other properties. During the pandemic, though, and with resulting supply-chain and retail pressures, Hasbro has put the eOne film and TV unit on the block and hastily moved to revamp its operations.
Along with the layoff news, the company released preliminary results for the fourth quarter, saying final results would be out February 16. Cocks signaled a “challenging holiday consumer environment” in the fourth quarter, saying the consumer products business in particular underperformed. Total revenue is headed for a 17% year-over-year drop to $1.68 billion, with losses per share expected in the 93 cents to $1 range — dramatically lower than Wall Street analysts’ forecasts.
The staff reductions, which are slated to start in the coming weeks, along with ongoing systems and supply chain investments are intended to help the company hit its goal of $250 million to $300 million in annual run-rate cost savings by 2025.
“We are focused on implementing transformational changes aimed at substantially reducing costs and increasing our growth rates and profitability,” Cocks said. “While the full-year 2022, and particularly the fourth quarter, represented a challenging moment for Hasbro, we are confident in our Blueprint 2.0 strategy, unveiled in October, which includes a focus on fewer, bigger brands; gaming; digital; and our rapidly growing direct to consumer and licensing businesses.”