PAWTUCKET, R.I. (WWLP-AP) - Toy maker Hasbro says its fourth-quarter revenue failed to meet expectations because of weaker-than-expected demand over the holidays. It plans to cut about 10 percent of its workforce and consolidate facilities to cut expenses.
The stock dropped more than 4 percent in premarket trading Friday.
The Pawtucket, R.I.-based company, whose brands include Monopoly and Nerf, has about 5,500 employees worldwide. A 10 percent workforce cut would put about 550 people out of work.
Spokesman Wayne Charness says the cuts will all be this year and will occur globally. He says the facility consolidations could include some closures.
Hasbro has a facility on Shaker Road in East Longmeadow which employs hundreds of workers. The plant has had layoffs and temporary job cuts in recent years , though it also recently received $25M in upgrades to improve efficiency. 22News contacted Hasbro for comment on the potential impact of the job cuts on the East Longmeadow plant, and we are currently awaiting a response.
Hasbro Inc. anticipates fourth-quarter revenue of about $1.28 billion. Analysts predicted revenue of $1.4 billion. Unfavorable foreign currency exchange rates lowered results by $8 million.
Shares declined $1.75, or 4.6 percent, to $36.70 before the market open.
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