Hasbro, the toy and entertainment company behind beloved franchises like Dungeons & Dragons and Transformers, has announced that it will be laying off 1,100 employees. This news comes shortly after the company had already cut 800 jobs in January. The layoffs are part of Hasbro’s efforts to reduce costs and streamline its operations, with hopes of saving $350 million to $400 million by 2025.
Key Takeaway
Despite a decline in overall revenue, Hasbro’s division that includes Wizards of the Coast (the company responsible for Dungeons & Dragons) has experienced a 40% growth in revenue. This highlights the increasing popularity and profitability of the Dungeons & Dragons franchise.
According to an SEC filing, Hasbro CEO Chris Cocks stated that the company will be focusing on licensing opportunities, scaling entertainment, and reallocating resources to drive new brand development. Cocks attributed the company’s losses to vague “market headwinds.” This strategic shift indicates that Hasbro is recognizing the potential in its successful franchises like Dungeons & Dragons.
Dungeons & Dragons has seen a surge in popularity in recent years, thanks in large part to the contributions of third-party content creators such as Critical Role and Dimension 20. These creators have brought the game to a wider audience through their live-play shows and online content. Additionally, the franchise gained further attention with a successful Hollywood film and the highly acclaimed video game, Baldur’s Gate III, which is based on the Dungeons & Dragons intellectual property.
However, Hasbro’s overall success has been overshadowed by the declining performance of its toys business. This creates an interesting dilemma for the company, as it finds itself with a valuable asset in Wizards of the Coast, which it acquired 24 years ago. Despite the challenges, Hasbro CEO Chris Cocks has emphasized that Dungeons & Dragons is a powerful brand with the potential to reach a wide audience and become as renowned as franchises like “Lord of the Rings” or “Harry Potter.”
While Hasbro’s plans to position Dungeons & Dragons as a universal and widely recognized brand have faced some obstacles, the company remains committed to its growth. In a memo to employees, Cocks stated that in order to achieve growth, Hasbro must first ensure its foundation is solid and profitable. Thus, the company aims to modernize its organization and improve efficiency.
As the layoffs continue and Hasbro charts its course for the future, it remains to be seen how the growing success of Dungeons & Dragons will shape the company’s overall strategy. For now, it is clear that Hasbro is reevaluating its priorities and embracing the opportunity presented by the thriving Dungeons & Dragons franchise.
