Hasbro, the iconic toymaker known for brands like Dungeons & Dragons, Transformers, and Monopoly, is making a significant move by laying off over 1,000 staff members due to declining toy sales. The company, which controls Wizards of the Coast and thus the Dungeons & Dragons property, cited weak sales in its toy and game segments as a primary reason for this decision. These layoffs are particularly poignant as they come just before the holiday season.

Despite this gloomy news for the toy division, the digital and gaming sectors are showing positive signs. Hasbro has capitalized on the former by licensing the D&D setting for highly successful video games like Baldur's Gate 3, developed by Larian Studios. This title has not only sold millions of copies but also clinched the Game of the Year award at The Game Awards 2023, highlighting a potential shift in focus for Hasbro from traditional to digital entertainment.

Hasbro's CEO, Chris Cocks, has expressed the need for the company to become leaner and more focused, targeting up to $300 million in annual savings by 2025. Employees affected by the layoffs are being offered comprehensive support packages, as they brace for these changes which are anticipated to unfold over the next 18 to 24 months.

Why is Hasbro laying off so many employees?

Hasbro is laying off a significant portion of its workforce due to continued and expected declines in toy and game sales, the need to modernize the organization, and a strategic shift toward focusing on fewer, bigger brands, gaming, digital markets, and direct-to-consumer and licensing businesses.