Hasbro Layoffs 2023: What to Know About the Latest HAS Job Cuts

  • Hasbro (HAS) is laying off 15% of its staff.
  • Its new Blueprint 2.0 strategy is based on digital assets.
  • Former gaming executive Chris Cocks is directing the strategy.
Hasbro Layoffs - Hasbro Layoffs 2023: What to Know About the Latest HAS Job Cuts

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Toy giant Hasbro (NYSE:HAS) will lay off 15% of its staff as it pivots to the online world. President Eric Nyman is among those leaving. These Hasbro layoffs follow a trend occurring throughout the entertainment and media sectors.

HAS stock fell 6% overnight. It was expected to open below $60 per share, with a market capitalization of about $8.3 billion. Over the last year, the stock is down 29%.

The company, based in Pawtucket, RI, said its products underperformed over the Christmas season. It announced sales fell 17% from a year ago, to $1.68 billion, with adjusted earnings of about $1.30 per share. Analysts had expected earnings of $1.52 per share and sales of $1.92 billion.

Hasbro’s toy assets include Nerf, Play-Doh, and the board games Monopoly and Clue.

Blueprint 2.0

While the toy business may be in bad shape, Hasbro is more than a toy company. It also owns Wizards of the Coast, a Washington state-based company that controls the Magic: The Gathering (MTG) and Dungeons & Dragons (D&D) franchises. Both tabletop games were originally conceived with cards and dice, but now feature multimedia, with online and film components.

The incoming CEO, Chris Cocks, formerly headed Wizards and takes office on Feb. 25. His appointment was announced on Jan. 5 but he is already directing the company’s Blueprint 2.0 strategy, announced in October. The plan aims to grow earnings by 50% via licensing digital assets.

But all is not well in Cocks’ old domain. Wizards recently tried to change its Open Gaming License (OGL) to something far more restrictive, alienating both fans and creators. Last week, Wizards attempted some damage control but investors will need to wait and see if the company passes its charisma saving throw or not.

Additionally, in the new OGL Wizards rejected the crypto world’s desires for non-fungible tokens (NFTs) and Web3 features, causing some crypto-centric creators to abandon the platform.

Hasbro is also ditching its film unit, called Entertainment One. The money raised will be used to support its digital game unit, Cocks said, which also includes the Transformers and Peppa Pig franchises. Hasbro bought Entertainment One for $4 billion back in 2019.

Hasbro Layoffs: What Happens Next?

Hasbro’s corporate faith is now tied to Cocks’ plans and, while the company won’t fall on one bad Christmas, investors are right to be concerned. Despite a dividend yielding 4.4% the company is now worth almost one-third less than five years ago.

On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/01/hasbro-layoffs-2023-what-to-know-about-the-latest-has-stock-job-cuts/.

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