Due to the closure of Toys “R” Us stores, Hasbro has been a victim of the fallout causing the toy maker to layoff up to 10% of its employees from all over the world. Hasbro employs more than half of their staff in United states and has around 5,400 employees currently.
“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 these job cuts are necessary as it could save the company between $30 – 40$ million a year by 2020. Since the closure of Toy “R” Us stores the company has attributed with loss of 12% in sales in the third quarter, even operating profit fell by 13% in third quarter.
Hasbro’s staff from its many brands such as Monopoly, Play-Doh, Nerf, Transformers and My Little Pony toys were also laid off, but most of those cuts were made outside United States.
Toys “R” Us’s another victim was Mattel, Mattel is known to own and distribute brands such as Hot Wheels, Barbie, Jurassic World, Polly Pocket, Thomas and Friends, Fisher-Price. Mattel had to cut 2,200 jobs so far and has stock’s fallen by 52% over the last year.
The two brands Hasbro and Mattel are also rivaling to stay on top as Hasbro has made a bid to acquire Mattel so as to further consolidate the world’s toy industry. Hasbro has been attempting to takeover ever since Mattel has been struggling to revive its faded brands. The deal’s details have been kept quiet so far and no price or discussions have been taking place.
Mattel has had better times and the toy giant two years ago was attempting to takeover Hasbro, though Hasbro rejected their bid saying the merger would never pass antitrust hurdles. Despite the merger crisis between the two companies, there is potential worry that United States might impose tariffs on toys imported from China, an estimated 85% toys that are sold in the United States are made in China.
Most blame the suffrage of Toys “R” Us failing business to be linked with the growth of e-commerce platforms, this year not only has USA’s biggest toy store cleared out its stocks but similar traditional retailers such as Sears and Walmart have faced large drop in stocks, causing Sears to declare Bankruptcy.