There’s a new round of Hasbro layoffs (NASDAQ:HAS) taking place due in large part to the bankruptcy of its subsidiary Toys R Us.
The company said that it would cut a part of its workforce following the demise of Toys R Us, which led to a considerable decline in sales, although it is unclear how many workers will be laid off. The toy maker said that for its third quarter of fiscal 2018, its revenue declined from $1.7 billion to $1.5 billion year-over-year, while its sales were down by 12% compared to the year-ago quarter.
“Our third-quarter results reflect loss of Toys R Us revenues in the U.S., Europe and Asia-Pacific,” CEO Brian Goldner said in a call he had with analysts. Goldner added that the ongoing liquidation of Toys R Us is “clearly visible” in the company’s latest financial results.
The company did not specify how many of its 5,400 workers around the globe, only about half of whom work in the U.S., would be laid off by the company but Goldner said the figure would likely be in the mid-single digits. He said the company projects to spend as much as $60 million on severance and related costs in the fourth quarter, with cash payments to be made starting with this month and extending through next year.
HAS stock is down about 2.7% on Monday.