Hasbro Cuts Workforce Amidst Tariff Troubles

Toy and game giant Hasbro announced on Tuesday that it has laid off approximately 3% of its global workforce, impacting around 150 employees. This move comes after the company repeatedly warned about the negative effects of tariffs on its profitability.

Hasbro’s CEO had signaled in April that job cuts were a likely consequence of ongoing tariff pressures. This isn’t the first time the company has faced such a difficult decision; Hasbro underwent a significant restructuring in 2023, which saw the elimination of 1,900 positions across two rounds of layoffs.

The impact of tariffs is most keenly felt in Hasbro’s Consumer Products segment, which encompasses popular toys and mass-market games. This segment experienced a 4% decline in sales during the first quarter of this year. In stark contrast, the Wizards of the Coast and Digital Gaming segment — home to beloved brands like Dungeons & Dragons and Magic: The Gathering — saw an impressive 46% surge in sales during the same period. Notably, the Wizards of the Coast segment has minimal exposure to tariffs, with only a handful of D&D products and no Magic: The Gathering products being produced outside the country.

This recent layoff highlights the ongoing challenges that global companies like Hasbro face due to fluctuating trade policies and their direct impact on various business segments.