Hasbro this week announced cost-cutting plans to cull about 3% of its workforce, some 150 employees, as the company faces increased U.S. tariffs on toys sourced from China.
The toymaker, based in Pawtucket, Rhode Island, notified workers on Monday; the losses reportedly spanned multiple departments and various global regions, according to reports in Reuters and the Wall Street Journal.
About half of the toys and games Hasbro sells in the U.S. are imported from China. To lessen the tariff blow, the company has recently ramped up efforts to diversify its supply chain.
During an earnings call in April, Hasbro CEO Chris Cocks said, "Ultimately, tariffs translate into higher consumer prices, potential job losses as we adjust to absorb increased costs, and reduced profits for our shareholders."
The cuts are part of a restructuring plan that will span several years. While the company didn't confirm the exact number of jobs impacted on Monday, the company reported 4,985 total workers in a recent financial filing.
In the first quarter of 2025, Hasbro reported a 17% increase in revenue driven by a 46% growth in its Wizards and Digital Gaming segment. Still, consumer products declined by 4%, which still beat expectations. According to the company, tariffs had "no material impact" on its Q1 results due to timing of implementation.
The current tariff on toys imported from China is 30%, which is better than the high-water mark of 145% reached during the hottest part of President Donald Trump's trade negotiations.
President Trump raised a red flag for the toy industry when he stressed that U.S. children might "have two dolls instead of 30 dolls" as a result of the trade dispute with China.
More cost-cutting could be on the horizon for the toy maker, as the company had fewer large deliveries scheduled through May 2025. Hasbro may face further uncertainty due to the current supply chain challenges.
