Hasbro Cuts 3% of Workforce Amid Tariff Pressures and Restructuring

Toy maker Hasbro (NASDAQ: HAS) is trimming its global headcount by 3%—about 150 employees—as part of a broader cost‐cutting effort driven by rising U.S. tariffs on toys sourced from China.

Tariff Shock and Margin Pressure

Hasbro sources roughly 50% of its U.S. toy and game inventory from China. In April, CEO Chris Cocks warned that “tariffs translate into higher consumer prices, potential job losses… and reduced profits.” The latest round of cuts follows a December 2023 reduction of 900 jobs and reflects the toymaker's need to preserve margins amid:

• U.S. Tariffs: New levies on Chinese imports have increased landed costs by up to 25%.

• Tepid Demand: Soft retail environments have pressured sales of core toy lines.

• Restructuring Costs: Multi‑year plan to streamline operations and accelerate digital growth.

Diversifying Sourcing and Logistics

In response to tariff risks, Hasbro is diversifying its supply chain, exploring manufacturing and shipping alternatives beyond China. A company spokesperson noted efforts to “reassess logistics routes and manufacturing” to mitigate future trade‐policy shocks.

Multi‑Year Restructuring and Digital Pivot

This workforce reduction is part of a multi‑year restructuring aimed at aligning Hasbro's cost structure with its long‐term goals:

• Digital & Licensing Growth: After beating Q1 revenue estimates, Hasbro is shifting focus to digital gaming and licensed content, which attract younger demographics.

• Operational Efficiency: Consolidating roles and centralizing functions to drive faster decision‐making.

Financial Health and Credit Profile

Hasbro's ability to weather these cuts hinges on its financial resilience. Key credit metrics remain solid:

• Credit Rating: Review Hasbro's current rating and debt metrics via the Company Rating & Information API. company-rating

• Liquidity Position: Ended fiscal 2024 with ample cash and manageable leverage, supporting ongoing restructuring without jeopardizing investment-grade status.

Investor Takeaways:

1. Cost Discipline: Continued headcount reductions signal management's commitment to protect margins.

2. Supply‑Chain Realignment: Diversification away from China could stabilize input costs over time.

3. Growth Pivot: Success in digital and licensed gaming will be critical to offset softness in traditional toy segments.

By monitoring Hasbro's credit profile and liquidity via the Company Rating API, investors can gauge the company's capacity to fund its transformation and emerge leaner in a challenging trade‑policy environment.