Toy Company Hasbro to Vacate Providence Office and Lay Off 1,100 Employees
International toy company Hasbro recently announced plans to vacate its Providence office, resulting in the layoff of 1,100 employees. This move comes in addition to the 800 jobs that were cut earlier this year in January. The majority of the layoffs are expected to take place within the next six months, with further reductions anticipated over the next year.
According to Hasbro, these layoffs are part of a larger strategy to streamline operations, minimize management layers, and create a more agile organization. The affected employees will receive comprehensive packages, including job placement support, to assist them during this transition.
While the impact on employees in Rhode Island is expected to be moderate, the closure of Hasbro’s Providence office by January 2025 is aimed at reducing the company’s global real estate footprint. The Providence office was underutilized, and employees will be relocated to the Pawtucket headquarters.
It is worth noting that cost-cutting measures and a voluntary early retirement program were already in place at Hasbro prior to these layoffs. The decision to downsize was prompted by a revenue drop in the fourth quarter of 2022 and ongoing challenges in the toy market. Hasbro’s revenue declined by 10% in the third quarter, primarily attributed to declines in consumer products and entertainment sales.
In an effort to mitigate the impact of these layoffs, Hasbro plans to invest some of the cost savings into new systems, product development, and partnerships. However, the company’s stock is currently at its lowest point in a decade, reflecting investor concerns about its future performance.
Hasbro has a rich history that dates back to its origins as a manufacturer of pencil-box covers. It later shifted its focus to toys, achieving success with its iconic Mr. Potato Head. The company went public in 1968 and acquired Milton Bradley in 1984.
While Hasbro has been removed from the Fortune 500 list, it remains on the Fortune 1000 at 585. The company continues to navigate the evolving toy market and is making strategic moves to position itself for future growth.
