Hasbro will lay off up to 10% of its employees, victims of the fallout after Toys “R” Us closed its doors.
The toymaker has not yet disclosed how many of its 5,400 global employees will lose their jobs. Just over half of Hasbro’s staff works in the United States.
“While some of these changes are difficult, we must ensure we have the right teams in place with the right capabilities to lead the company into the future,” a company spokesperson said in a statement.
Hasbro said the job cuts should save the company between $30 million to $40 million a year by 2020. Hasbro’s sales fell 12% in the third quarter, a drop the company attributed primarily to the loss of Toys “R” Us. Operating profit fell 13% in the third quarter, though the company got a slight benefit from the new US tax law.
Hasbro, which makes Monopoly, Play-Doh, Nerf, Transformers and My Little Pony toys, also laid off an undisclosed number of workers in the first quarter. Most of those job cuts were outside the United States.
Rival Mattel (MAT) announced it would cut 2,200 jobs worldwide in July because of Toys “R” Us’ closure. The nation’s largest toy store announced in March it would close all of its US stores.
Toy makers are also bracing for the possibility of the United States imposing tariffs on toys imported from China. An estimated 85% of toys sold in the United States are made in China. The Trump administration has threatened a new round of tariffs that is expected to include most imports from China not already facing tariffs.
Hasbro’s (HAS) stock fell 7% in premarket trading.