‘Transformers,’ ‘Peppa Pig’ Owner Hasbro To Lay Off 1,100 Workers As Holiday Toy Sales Struggle

Toy manufacturing giant Hasbro, which owns major animated properties including My Little Pony, Peppa Pig, and Transformers, is laying off 1,100 of its toys and games employees, representing 20% of its workforce.

According to a letter from CEO Chris Cocks, revealed by Deadline, the layoffs were necessary due to slow holiday toy sales this year. Some of the affected employees have been notified already, although the layoffs will roll out over the next six months. It’s been a rough year overall for Hasbro, which laid off 800 workers back in January.

In his email to employees, Cocks wrote:

The market headwinds we anticipated have proven to be stronger and more persistent than planned. While we’re confident in the future of Hasbro, the current environment demands that we do more.

December’s Christmas shopping period is the most important of the year for toy companies, many of which make about half their annual sales in the weeks before the holiday. According to data from Circana cited by The Wall Street Journal, U.S. toy sales in November were down 10% year-on-year. Hasbro is predicting its own 2023 sales will finish 15% below last year’s totals.

Since taking over, Cocks has focused on steadying the ship at Hasbro, which included selling off its eOne production business and launching Hasbro Entertainment to continue working with its remaining brands. At the time, Hasbro Entertainment had more than 30 projects at different stages of development and production.

One way Hasbro could boost sales in the future is through that production business. Mattel, the maker of Barbie toys, is one of the few big toy manufacturers that won’t see a drop in sales this year, thanks to the success of the live-action film based on the iconic doll franchise.

Meanwhile, Teenage Mutant Ninja Turtles merchandise is projected to surpass $1 billion in global retail sales this year thanks to the success of Paramount and Nickelodeon’s animated feature Teenage Mutant Ninja Turtles: Mutant Mayhem. According to a Deadline report, Paramount Consumer Products courted over 400 licensees for the film and 1,100 for the franchise.

Next September, Hasbro will hope for similar results when it releases Transformers One, produced by Paramount Animation. Directed by Toy Story 4’s Josh Cooley, the film features an A-list voice cast, including Chris Hemsworth, Bryan Tyree Henry, Scarlett Johansson, Keegan-Michael Key, Jon Hamm, and Laurence Fishburne. Transformers One will tell the origin story of how a young Optimus Prime and Megatron went from being close allies to mortal enemies.