Hasbro Announces Major Restructuring and Job Cuts, Aiming to Reach $250M-$300M Savings by 2025
January 29, 2023
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This year, Hasbro ($NASDAQ:HAS), one of the world’s leading toy manufacturers, has announced a major organizational restructuring and job cuts. The restructuring will affect around 15% of its worldwide staff, beginning to be implemented over the coming weeks. Hasbro has stated that this move, alongside consistent investments in systems and the supply chain, is aimed at achieving an annual savings of $250M-$300M by 2025, allowing them to reinvest in the development of their core brands. Hasbro is an American multinational corporation that specializes in the design and manufacture of toys, games, and entertainment products. It is a publicly traded company listed on the Nasdaq Global Select Market under the symbol HAS. The restructuring plan is part of Hasbro’s long-term commitment to achieving sustainable growth and profitability. The company is confident that this strategy will reduce costs while also allowing them to invest in new product innovation and consumer experiences.
It is expected that this move will help Hasbro to remain competitive in the ever-changing toy industry and capture emerging opportunities in a rapidly-evolving consumer landscape. The company has stated that it will do its utmost to make the transition period as smooth as possible for employees affected by the job cuts. This includes providing severance packages, career transition assistance, and outplacement services. Hasbro’s restructuring plan is a clear indication of its determination to remain a leader in the global toy market. The company is confident that this move will help to improve its financial performance and ensure its long-term success.
Share Price
On Thursday, Hasbro Inc. announced a major restructuring and job cuts, aiming to reach $250M-$300M savings by 2025. The move caused negative media attention and the stock opened at $64.9 and closed at $63.8, down by 0.5% from prior closing price of 64.1. Hasbro has been restructuring operations for the past few years in an effort to remain competitive in the market.
Additionally, the company has made strategic moves such as closing underperforming stores to save money. This is not the first time Hasbro has faced major job cuts in its history. The new restructuring plan is expected to have a significant impact on Hasbro’s operations, but the company is optimistic that it will be able to deliver cost savings and higher profits. The company has stated that it is confident that it can reach its $250M-$300M savings goal by 2025. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hasbro. More…
| Total Revenues | Net Income | Net Margin |
| 6.19k | 414.6 | 7.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hasbro. More…
| Operations | Investing | Financing |
| 394.5 | -301.3 | -679.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hasbro. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.63k | 6.63k | 21.55 |
Key Ratios Snapshot
Some of the financial key ratios for Hasbro are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.8% | 15.9% | 11.0% |
| FCF Margin | ROE | ROA |
| 3.7% | 14.3% | 4.4% |
VI Analysis
Company fundamentals are an important factor in understanding a company’s long-term potential. A great way to assess a company’s fundamentals is through the VI app, which provides a simplified analysis of the company’s financial health. According to VI Star Chart, HASBRO has a high health score of 8/10 with regard to cashflow and debt, which indicates that it is well equipped to handle economic downturns and sustain future operations. In addition to its strong cash flow, HASBRO also has a strong dividend score and profitability score. Its growth score is rated as medium and its asset score is weak. This suggests that the company has achieved moderate revenue or earnings growth, and its asset strength is not as strong as its other financial metrics. This profile of HASBRO would be attractive to investors who are looking for a relatively stable company that has a good dividend yield and is profitable. Investors who are looking for a company with an upside potential in terms of growth may not be as interested in such a company. However, the fact that it has strong cash flows, debt, and dividends may make it attractive to those who are looking for a reliable and safe investment. More…
VI Peers
Hasbro Inc is a publicly traded company that designs, manufactures, and markets games and toys. The company operates in three segments: US and Canada, International, and Entertainment and Licensing. Hasbro has a portfolio of brands that includes NERF, MONOPOLY, MAGIC: THE GATHERING, MY LITTLE PONY, TRANSFORMERS, PLAY-DOH, and SESAME STREET. The company’s competitors include Spin Master Corp, Huayi Tencent Entertainment Co Ltd, and BANDAI NAMCO Holdings Inc.
– Spin Master Corp ($TSX:TOY)
Spin Master Corp is a global leader in children’s toys, entertainment and lifestyle products. The company has a market cap of 4.57B as of 2022 and a Return on Equity of 21.64%. Spin Master Corp’s products include some of the world’s most popular toy brands, such as Paw Patrol, Hatchimals and Zoomer. The company’s products are available in over 100 countries and its mission is to inspire the next generation of play.
– Huayi Tencent Entertainment Co Ltd ($SEHK:00419)
Huayi Tencent Entertainment Co Ltd is a Chinese entertainment company with a market cap of 2.05 billion as of 2022. The company has a return on equity of -28.77%. The company is involved in the production, distribution, and exhibition of films and television programs in China. The company also operates an online game platform and a social networking website.
– BANDAI NAMCO Holdings Inc ($TSE:7832)
BANDAI NAMCO Holdings Inc is a Japanese holding company that operates in the entertainment industry. It has a market cap of 2.16T as of 2022 and a return on equity of 16.4%. The company was founded in 1955 and is headquartered in Tokyo, Japan. BANDAI NAMCO Holdings is engaged in the development, production, and marketing of toys, games, and other entertainment products. The company’s products are sold in over 40 countries worldwide.
Summary
Hasbro Inc. has recently announced a major restructuring, which includes job cuts and is aimed at achieving $250M-$300M in savings by 2025. This restructuring is expected to have a positive effect on the company’s bottom line and profitability, as well as its stock performance in the long run. Investors should consider buying shares of Hasbro, as this could be a great opportunity to take advantage of the company’s cost-cutting measures. Furthermore, Hasbro is expected to benefit from an increase in demand for toys and games over the coming years, which could lead to further upside potential.
However, investors should be aware of short-term negative media exposure that could negatively affect the stock in the near future.
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