Hasbro Inc HAS shares are dropping after it announced additional strategic steps to steer the business for future growth after a review of its cost structure and organizational design, including a revised organizational structure.
The organizational restructure includes voluntary early retirement for certain groups of employees and additional involuntary reductions in employees. This is expected to result in the elimination of 900 positions, to be completed over the next 18 to 24 months.
Following the strategic review announced in October 2022, in January 2023, Hasbro announced a job cut of about 1,000 positions, about 15% of its global workforce. The company incurred about $94 million of expenses related to severance, stock compensation and employee benefits.
In the wake of the latest actions, Hasbro expects to incur about $40 million of incremental severance-related expenses. The fresh job cuts are expected to deliver gross annual run-rate cost savings of approximately $100 million.
Hasbro now expects to deliver gross annual run-rate cost savings of approximately $350 million to $400 million by the end of 2025 (previously $250 million - $300 million).
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Price Action: HAS shares are trading lower by 5.3% at $46.30 in premarket on the last check Tuesday.
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