News Summary
Hasbro has announced the layoff of approximately 150 employees, which accounts for 3% of its global workforce. The restructuring is in response to rising costs and aims to align with the company’s long-term objectives. As discussions around relocating its headquarters intensify, Rhode Island officials are working to retain Hasbro in Pawtucket. These changes come alongside a significant revenue increase, yet the company aims to cut operational costs as it navigates a challenging economic landscape.
Pawtucket, Rhode Island – Hasbro, the well-known toy and game manufacturer, has laid off approximately 150 employees, accounting for 3% of its global workforce. These layoffs, which affect fewer than 30 workers in New England and a small number from the company’s Rhode Island headquarters, are part of a strategic restructuring aimed at aligning the company’s structure with its long-term objectives.
As Hasbro considers relocating its headquarters, Rhode Island officials are actively working to persuade the company to remain in Pawtucket or elsewhere in the state. Speculation about a potential move to Boston has heightened the urgency of these discussions. Hasbro has indicated that a decision on its headquarters’ future is expected to be announced this summer.
Headquartered in Pawtucket, Hasbro employed around 5,000 employees at the end of 2024, with a large percentage situated in North America and Europe. The company has faced challenges related to rising costs stemming from increased tariffs, notably because 40% of its toys are produced in China. In response to these economic pressures, Hasbro plans to reduce its reliance on Chinese manufacturing to 20% in the coming years.
To enhance efficiency and reduce operational costs, Hasbro’s Chief Financial Officer has shared that a savings program initiated in 2022 has yielded approximately $600 million in gross cost savings. Despite the layoffs, the company reported a 17% revenue increase in the first quarter of 2025, significantly benefiting from the popularity of its game Magic: The Gathering. This uptick in revenue juxtaposes a recent 15% decline in annual revenue, primarily attributed to the divestiture of its film and TV business, Entertainment One.
CEO Chris Cocks has acknowledged the pressing need for a new, more modern headquarters that fosters an innovative work environment. The current facilities in Pawtucket have been deemed outdated. As part of ongoing efforts to streamline expenses, Hasbro plans to implement an additional $250 million in cost reductions, bringing their total cost-cutting goal to $1 billion by 2027.
Rhode Island officials are examining potential incentives to retain Hasbro in the state, particularly within the I-195 Redevelopment District, as discussions surrounding the company’s relocation have been ongoing for several years. However, no definitive commitments have been made regarding a new site at this time.
In light of its evolving business landscape, Hasbro is also exploring collaboration opportunities with rival companies, including claims to develop joint product lines with Mattel. Potential partnerships could expand Hasbro’s market offerings and improve its competitive standing.
The current restructuring phase aims not only to address immediate challenges but also to pave the way for long-term sustainability and growth. As the company continues to evaluate its headquarters status and employee restructuring, further updates are anticipated in the early months of 2025, signaling a pivotal moment for Hasbro as it navigates through these significant changes.
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Additional Resources
- Boston Globe: Hasbro Toys Layoffs
- Google Search: Hasbro layoffs
- Providence Journal: Hasbro Cost Cutting
- Encyclopedia Britannica: Hasbro
- NBC Boston: Hasbro Layoffs
- Google News: Hasbro Boston
- Turn To 10: Hasbro Layoffs
- GoLocal Prov: Layoffs in Rhode Island
