According to an SEC filing, Hasbro is laying off 1,100 employees. This decision comes after the company already laid off 800 employees in January. Some employees will receive notification of their job status on Tuesday, while others will be let go in the coming year. Hasbro aims to save $350 million to $400 million in costs by 2025.
Hasbro CEO Chris Cocks, in a memo to employees shared within the SEC filing, expressed plans to focus on licensing opportunities, scaling entertainment, and reallocating resources for new brand development. He attributed the company’s losses to “market headwinds.”
Despite a 10% decline in overall revenue, Hasbro owns Wizards of the Coast (WoTC), the company behind successful franchises such as Dungeons & Dragons (D&D) and Magic the Gathering, which generates over a billion dollars annually. The division responsible for overseeing WoTC and digital gaming has seen a 40% year-over-year revenue increase to $423.6 million, resulting in a $203.4 million operating profit. Despite this substantial growth, Hasbro as a whole has faced challenges. Consequently, Cocks is refocusing the company’s efforts on its profitable ventures.
Dungeons & Dragons has experienced a surge in popularity in recent years, largely due to the influence of third-party content creators such as Critical Role and Dimension 20, as well as the success of related Hollywood films and video games like Baldur’s Gate III. Last week, Baldur’s Gate was honored with the title of Game of the Year at the Game Awards.
Hasbro now finds itself in a unique position — while its traditional toys business is declining, it unexpectedly benefits from the success of Wizards of the Coast, a company it acquired 24 years ago.
During an investor call last December, Cocks described the broad strategy for D&D, comparing its brand awareness to popular franchises like ‘Lord of the Rings’ and ‘Harry Potter.’ However, Hasbro faces challenges in reshaping Dungeons & Dragons — a game characterized by player-driven narratives and characters — into a more universally recognized brand akin to Harry Potter and Lord of the Rings. Although the movie “Dungeons & Dragons: Honor Among Thieves” received favorable reviews upon its release in March, it ultimately underperformed at the box office.
In the company memo, Cocks asserted the need to solidify a profitable foundation by modernizing the organization and streamlining operations to position Hasbro for growth.
