Hasbro to Make Cuts, Company Realized 15% Drop in Revenue in Quarter

Hasbro to Make Cuts, Company Realized 15% Drop in Revenue in Quarter

Hasbro projected a 15% drop in revenue in the most recent quarter, prompting the company to lower its full-year outlook amid worsening economic conditions.

Headquartered in Rhode Island, the company is transitioning with a new CEO after the death of long-time CEO Brian Goldner. He died in October of 2021.

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Most concerning for the Rhode Island footprint is the announcement of major cost-cutting.

On Tuesday, the stock was trading at $68.99 a share, down from a 52-week high of $105.75 -- a 34% decline.

 

$250-$300 Million in Cost Savings

"Guided by a new Blueprint with the consumer as its north star, the Company will focus investment on its most valuable franchises across toys, games, entertainment and licensing," said the company.

Hasbro said it is implementing an Operational Excellence program designed to deliver $250-$300 million in run-rate cost savings over the next three years, with $150 million expected in run-rate savings by year-end 2023.

“Hasbro has many strengths: amazing brands that span generations, a gaming portfolio second to none, a history of play and entertainment innovation led by some of the best teams in the business, and unwavering corporate citizenship,” said Chris Cocks, Chief Executive Officer, Hasbro. “Building on these strengths, today we announced a new day for Hasbro with the introduction of Blueprint 2.0. This strategic approach is core to how we’ll continue to bring our strong brands to life for consumers of all ages, and how we’ll manage the business to monetize our intellectual property, drive investments, deliver profitable growth and create shareholder value.”

No word on how the financial cuts will impact jobs and activities in RI.