Hasbro is set to lay off approximately 1,100 employees due to persistently weak sales that have extended into the holiday shopping season. As per the company's fact sheet earlier this year, Hasbro employed around 6,300 individuals.

CEO Chris Cocks acknowledged the challenging landscape, especially in the toy market, attributing it to the industry's decline from the pandemic-driven peak, reported CNBC. Despite making organisational strides, the hurdles witnessed in the first nine months continue into the holiday period and are expected to persist into 2024.

“We anticipated the first three quarters to be challenging, particularly in Toys, where the market is coming off historic, pandemic-driven highs. While we have made some important progress across our organisation, the headwinds we saw through the first nine months of the year have continued into Holiday and are likely to persist into 2024,” CEO Chris Cocks said in the memo. 

This announcement follows previous layoffs earlier this year and aligns with the cautionary note sounded in October, where Hasbro revised its annual revenue forecast, anticipating a 13% to 15% decline.

The dip in sales of popular toy brands like My Little Pony, Nerf, and Transformer by 18% was also highlighted in the October quarterly report, reflecting the impact of softer market trends.

Hasbro's stock has faced a steep decline, nearing a 20% decrease as of Monday's market close.

While Hasbro's competitor, Mattel, also signalled subdued sales, the success of the movie "Barbie" somewhat bolstered Mattel's stock by approximately 6% through Monday. However, this gain trails behind the S&P 500's 17% growth this year.

The broader retail landscape hints at a lacklustre holiday season, with reduced consumer discounts in the toy sector compared to the previous year.

Hasbro's shares plummeted over 4% in after-hours trading on Monday, mirroring a similar slip in Mattel's stock.