News Summary
Hasbro, Inc. is contemplating moving its corporate headquarters from Pawtucket, Rhode Island, to Boston due to financial difficulties. The toy giant plans to lay off fewer than 100 employees as part of its restructuring efforts. Rhode Island officials are working to retain the company, which is one of the state’s largest employers. CEO Chris Cocks is expected to provide updates on the headquarters decision by early 2025. Meanwhile, Hasbro is also looking to close its office in Providence as it seeks larger spaces and operational efficiencies amidst industry challenges.
Rhode Island – Hasbro, Inc., the toy giant known for popular brands, is contemplating moving its corporate headquarters from Pawtucket, Rhode Island, to Boston. The company has been deliberating its location strategy since last year amid ongoing financial difficulties and workforce reductions. CEO Chris Cocks has indicated that employees can expect an update on the headquarters decision within the first three months of 2025.
As part of its restructuring efforts to “resize our cost base,” Hasbro announced plans to lay off fewer than 100 employees. The decision to potentially relocate threatens to remove one of Rhode Island’s largest employers. Discussions between Hasbro executives and Massachusetts officials about a possible move have been ongoing since at least April 2024, with details of these talks becoming public around September 16, 2024.
Rhode Island leaders are striving to formulate strategies to retain Hasbro, recognizing the potential loss not only of jobs but also of economic activity if the company relocates. CEO Cocks characterized the current Pawtucket headquarters as “showing its age,” suggesting a preference for a more modern environment tailored to collaborative work.
Financially, Hasbro’s latest earnings report revealed a profit of $223 million for the quarter ending September 29, 2024, despite experiencing a 15% revenue drop compared to the same period a year prior. This downturn has been influenced by struggles within the toy industry and a recent loss from the sale of its film and television division, Entertainment One. Notably, however, the games and licensing sector, particularly brands like Dungeons & Dragons and Magic: The Gathering, has continued to thrive, contributing to overall revenue growth in that division.
Hasbro’s plans also include the closure of its six-story office in downtown Providence. In total, the company has laid off over 1,000 employees since 2023 amid the unfavorable market conditions faced by the toy sector. The company is now seeking larger office spaces, estimated at around 200,000 to 250,000 square feet, and has expressed interest in several locations within Rhode Island, such as the I-195 Redevelopment District in Providence.
Business leaders have commented that while there remains a possibility for Hasbro to continue its operations in Rhode Island, state officials must proactively address the company’s needs and concerns to ensure its retention. Measures being discussed include potential incentives from the Rhode Island Commerce Secretary and Providence’s mayor to attract Hasbro to remain in its current state.
Operational efficiencies are also on Hasbro’s agenda, as the firm seeks to improve its balance sheet for the forthcoming years. Currently, the Rhode Island Department of Labor has not received any formal notifications regarding impending layoffs from Hasbro, adding an element of uncertainty to the discussions surrounding the headquarters move.
Overall, the potential relocation of Hasbro underscores the shifting dynamics of the corporate landscape in Rhode Island and its reliance on significant employers, as the company weighs its options and engages in conversations with multiple stakeholders. The outcome of these discussions will depend heavily on the feasibility and advantages presented by the proposed move, as well as efforts by Rhode Island leaders to retain this iconic brand within their borders.
Deeper Dive: News & Info About This Topic
- Rhode Island Current
- Wikipedia: Hasbro
- Boston Globe
- Google Search: Hasbro headquarters move
- Providence Journal
- Encyclopedia Britannica: Toy
- CBS News
- Google News: Hasbro job layoffs
