Hasbro to Lay Off 1,100 Employees Despite D&D Success

Hasbro is set to reduce its global workforce by 1,100 positions, according to a recent SEC filing. This latest round of cuts follows a prior reduction of 800 employees earlier this year, as the toy and gaming giant attempts to navigate ongoing market challenges.

The company aims to achieve annual cost savings between $350 million and $400 million by 2025. While some staff members are being notified of their termination this Tuesday, the remainder of the layoffs will be processed throughout the coming year.

Strategic Shift Toward Digital and Licensing

CEO Chris Cocks addressed the restructuring in a memo to employees, citing the need to modernize the organization and become “leaner.” The leadership team intends to pivot resources toward scaling entertainment, expanding licensing opportunities, and prioritizing internal brand development.

Despite a 10% decline in overall revenue, specific segments of the business have shown significant resilience. The division housing Wizards of the Coast (WoTC)—the entity behind Magic: The Gathering and Dungeons & Dragons—has been a standout performer:

• Revenue Growth: The digital gaming and WoTC sector saw a 40% year-over-year increase, reaching $423.6 million.
• Profitability: This division generated $203.4 million in operating profit, highlighting its role as a primary financial engine for the company.

The D&D Paradox

The popularity of Dungeons & Dragons has reached new heights, fueled by the success of the video game Baldur’s Gate III—which recently earned Game of the Year honors—and the influence of third-party content creators like Critical Role and Dimension 20.

However, Hasbro faces a complex transition. While Cocks has previously compared the brand’s potential to Harry Potter or Lord of the Rings, attempts to expand the franchise have met mixed results. The feature film Dungeons & Dragons: Honor Among Thieves, released in March, underperformed at the box office despite positive critical reception.

As the company struggles with a declining traditional toy business, the current restructuring appears to be an attempt to stabilize the corporate foundation by leaning heavily into the high-performing assets within its digital and tabletop gaming portfolios.