Toymaker Hasbro has laid off 3% of its global workforce—roughly 150 employees—as part of a broader cost-cutting initiative in response to rising U.S. tariffs on Chinese-made toys.
According to its fiscal 2024 annual report, Hasbro employed approximately 4,985 people worldwide.
“We are aligning our structure with our long-term goals,” Hasbro spokesperson Abby Hodes told Reuters.
The company sources about half of its U.S. toy and game inventory from China and has been accelerating efforts to diversify its supply chain and reduce reliance on Chinese manufacturing.
Concerns over a deepening global trade war, intensified by President Donald Trump’s tariffs, have increased pressure on the already strained toy industry, which continues to battle sluggish demand.
“Ultimately, tariffs translate into higher consumer prices, potential job losses as we adjust to absorb increased costs, and reduced profits for our shareholders,” Hasbro CEO Chris Cocks said during an April earnings call.
During that same call, the company noted it was also reassessing its logistics and manufacturing strategies.
This latest round of layoffs follows Hasbro’s December 2023 announcement that it would cut 900 jobs worldwide, nearly a year after it had already committed to reducing its workforce by 15% amid declining sales.
The Wall Street Journal first reported the latest job cuts on Tuesday, noting they are part of Hasbro’s ongoing multi-year restructuring plan. The company, known for Play-Doh and Monopoly, declined to comment on the exact number of layoffs.
Despite the turmoil, Hasbro exceeded expectations in its April quarterly report, buoyed by growth in its digital and licensed gaming segments, which have gained traction with younger consumers. The company has struggled for nearly three years to reignite demand in its traditional toy business.
Some firms attempted to mitigate tariff impacts by pulling forward imports ahead of President Trump’s tariff rollout. However, that stockpile is believed to be nearly depleted, raising the likelihood of further layoffs and price hikes.
The tariff increases have had a profound impact on the toy industry. In February, the administration imposed a 10% tariff on Chinese imports, which escalated to 20% in March. April saw an additional 34% tariff, culminating in a full-blown trade war that drove U.S. tariffs on Chinese goods to 145%, while China retaliated with 125% tariffs on U.S. exports—effectively bringing bilateral trade to a halt.
The tariffs on China, in particular, have delivered the most significant blow to the toy industry in 2025.
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