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Hasbro Looks To Cut More Costs To Offset Slumping Sales

In a new article from the WSJ, Hasbro's Chief Financial Officer Gina Goetter stated that the company will be increasing efforts to cut costs within the company more aggressively in order to help compensate for slumping sales. Revenue at Hasbro fell 15% in 2023 to $5 billion as demand in the toy market softened due to things like rising inflation. This month they announced that they have increased their 2025 cost-savings goal from $350-$400 (Which is what they announced the goal would be 2 months ago) to $750 million.

This effort has started in their game division and will expand to other product brands throughout 2024.

“We’re not just talking about nickels and dimes,” Goetter said. “We’re talking about material moves that we can make on product costs.”

The article doesn't talk much about action figures but it does use Hasbro's Nerf brand as an example. They state that Hasbro has identified 40 cost-savings ideas for that brand that include things such as the thickness of the plastic it uses to the type of packaging. Hasbro states that if they adopt just 8 of the largest ideas to cut costs for Nerf, it will save them $10 million.

Other actions Hasbro has taken recently to cut costs at the company include the announcement late last year where they stated that they would be cutting roughly 20% of it's workforce in 2024, which translates to roughly 1100 people. Hasbro is also looking to lower vendor costs and increase efficiency across its supply chain.

Hasbro also has begun shifting their less profitable brands to a licensing model which means instead of making the product themselves and carrying that inventory on it's books, they are allowing other companies to pay them for the privilege of making the stuff. Examples given in the article for this included Easy-Bake Oven and FurReal Friends.

As I said, this article doesn't really focus much on the action figures that are produced in large part for adult collectors these days. In fact Hasbro has previously stated that things like Transformers experienced a %25 full year growth in 2023 and G.I. Joe has been mentioned as doing well for them as well. Still you have to wonder overall how these cost saving measures Hasbro plans to implement will effect in terms of quality and availability the stuff we the adult collector buy from them?

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Member Comments

Last 10 comments - ( Read All Posts )
LedBlimp 2024-02-13 @ 4:35 pm

Probably down because of all the crappy rise of the beasts merchandise.  The main lines were really lacking content last year as a result.

TECHTRON 2023-12-12 @ 8:20 pm

I agree with everything that you said and I am sure everyone else does as well.

Decepticats 2023-12-12 @ 4:30 pm

There are many factors as to why Hasbro has found themselves on the verge of bankruptcy. First, they spent too much time and resources on older fans and neglecting younger ones. Then, there's the whole entertainment debacle,  whether it's the Disney disaster, or Hasbro entertainment, both have missed the mark, with some estimating only 8-15% of the audience for the films these toys are based off of, are in that 7-12 age range.

It's true, kids attentions are diverted more than ever now, with smart phones and the like, but to blame all of their failings on this one truth, is intellectually dishonest. 

Whether you agree or disagree with its "values," the whole woke thing is extremely unpopular and devisive. Many are referring to it as a "new religion," because it's that dogmatic. And Hasbro has been pushing this agenda hard, which has not gone unnoticed by many toy buyers.

The increased toy prices coupled with dreadful plastic and qc has angered many. Then you have a company that makes most it's money from plastic toys, virtue signaling by discontining the plastic windows and having some tf's open to air while others are completely hidden away inside a box. 

These are just a few of Hasbro's problems. But the fact those at the top of this company where either unaware, or worse, believed any of these things where good ideas, tells me this company is in worse trouble than we know, and, most likely, won't be around much longer.

All of this could have been avoided if the people running Hasbro hadn't been so short-sighted and sanctimonious, instead of just making the toys people wanted. People can exist without toy companies, but toy companies can't exist without people. It seems Hasbro forgot this.

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