In an unfortunate turn of events, games and toys producer Hasbro has announced the dismissal of around 900 to over 1,000 of its employees. The company cites very poor sales for the holidays in the closing period of 2023.
This decision comes unexpectedly, as Hasbro netted significant success this year. Despite a number of controversial issues, Wizards of the Coast turned in stellar profits thanks to its major brands, Magic: The Gathering and Dungeons & Dragons. Aside from WotC’s billion-dollar revenues, Monopoly GO brought in significant contributions to Hasbro’s bottom line and increased stock profile.
However, these are only part of the equation. Details have surfaced that despite efforts to push the profitability, Hasbro’s other lines of business and production suffered in 2023.
In an internal memo that has become publicly available, Hasbro CEO Chris Cocks stated that the company posted significant wins. These include “retooling our supply chain, improving our inventory position, lowering costs, and reinvesting over $200M back into the business”.
Cocks then shifted to the reason for the layoffs, stating “the market headwinds we anticipated have proven to be stronger and more persistent than planned.”
But why enforce these layoffs so close to the Christmas through New Year period? The Hasbro CEO had this to say:
“We entered 2023 expecting a year of change including significant updates to our leadership team, structure, and scope of operations. We anticipated the first three quarters to be challenging, particularly in Toys, where the market is coming off historic, pandemic-driven highs. While we have made some important progress across our organization, the headwinds we saw through the first nine months of the year have continued into Holiday and are likely to persist into 2024.”
Cocks added:
“To position Hasbro for growth, we must first make sure our foundation is solid and profitable. To do that, we need to modernize our organization and get even leaner.”
The rest of the memo from the Hasbro CEO laid out the other actions being taken, including job placement support, revising the company’s organizational model, and exiting the Providence, Rhode Island office by 2025. The Hasbro employees affected by the layoffs will be informed over the course of the next 6 months.
Hasbro’s decision of sacking around 15% to 20% of its workforce during the Christmas 2023 season seems reasonable, given these details Cocks stated. However, the announcement and execution could have been set at a better time. Plus, a series of layoffs already occurred earlier in 2023, which would actually bring the total closer to 2 thousand employees.
Both current and past Hasbro employees, as well as fans of brands like Dungeons & Dragons and Magic: the Gathering, have taken to social media to express their thoughts on the layoffs.
Sadly, my position at Wizards of the Coast was eliminated today along with many others due to the Hasbro layoffs.
I've absolutely loved working at WotC and making Magic Tabletop/MTGO/MTG Arena the best it can be these past 9 years, and I'm looking for my next opportunity! 1/2
— David McDarby (@J_Beleren) December 13, 2023
Most of the non-Hasbro employee reactions were to express their empathy for the affected workforce, but others directly criticized the company for the harsh timing and unfair treatment of the sacked Hasbro employees.
Hasbro CEO talking about how Wizards made the most money ever last year and then laying off a bunch of WOTC staff just before the holidays is infuriating.
— Saffron Olive (@SaffronOlive) December 13, 2023
Jesus. Whoever manages to nab Dan as a result of WotC's idiocy here is going to be the real winner. Absolute bullshit, honestly. https://t.co/LR1ok8BsbD
— Ginny Di (@itsginnydi) December 13, 2023
Not that my advice is worth much, but for any designers currently at wotc or who have just moved on: indie publishing has never been stronger. I believe in it and believe in you. If any designer wants a pointer towards self-publishing, or promo when they do, I'll help if I can
— DnD_Shorts (@DnD_Shorts) December 12, 2023
Hasbro’s subsidiary Wizards of the Coast is looking at 2024 as a big year for its signature brands. Dungeons & Dragons will be celebrating the tabletop roleplaying game’s 50th anniversary and the release of One D&D. Meanwhile, Magic: The Gathering will be expanding its popular Universes Beyond crossovers with blockbuster video game properties such as Fallout and Assassin’s Creed. How will these layoffs impact these events and product releases?
