The Hasbro headquarters in Pawtucket, facing potential changes.
Hasbro, the iconic toy giant based in Pawtucket, Rhode Island, has reported a concerning 17% drop in revenue for 2024. The decline, attributed in part to the sale of its eOne subsidiary, raises questions about the future of the company’s headquarters. As Hasbro plans significant cost-cutting measures and explores other business segments, local leaders are anxious about the implications for the community and potential relocation discussions hinting at other Massachusetts locales.
Pawtucket, Rhode Island, has been home to Hasbro for over a century, but the iconic toy giant is currently navigating some choppy waters. Recently, the company announced a concerning 17% drop in revenue for 2024—a significant decline that has left many wondering about the future of the headquarters in this historic city.
The primary culprit behind the steep revenue decrease appears to be the sale of Hasbro’s subsidiary eOne. However, when looking at the numbers without considering this sale, the revenue drop shrinks to a more manageable 7%. In terms of financial performance, Hasbro managed to turn in an adjusted earnings-per-share of 46 cents in the fourth quarter, which actually exceeded analyst expectations, who were predicting figures closer to 34 cents.
Looking ahead, plans are in place for the company to tighten its purse strings even further, with an ambitious goal of saving $1 billion by 2027. To kick-start this initiative, Hasbro is targeting an additional $250 million in cost cuts in the near future. This comes during a time when the company has already slashed jobs significantly—a notable cut of 1,100 jobs was made at the end of 2023 alone.
In terms of performance, Hasbro’s Wizards of the Coast and Digital Gaming segment has seen a positive trend, growing by 4%. However, not all segments are faring as well; Consumer Products and Entertainment have suffered declines of 12% and a staggering 88%, respectively. This mixed bag of results suggests that while there are areas of growth, others are in desperate need of revitalization.
As Hasbro sets its sights on the future, the company plans to refocus resources on operational improvements alongside an exciting lineup of new toys and games slated for introduction in 2025. Despite the rampant rumors swirling around a potential relocation of its headquarters—possibly to Boston—no concrete announcements were made during the recent investor calls. However, discussions are reportedly ongoing regarding potential locations, including options in both Providence and Boston, yet no timeline has been detailed.
The current headquarters spans a substantial 320,000 square feet, but Hasbro is exploring options that range between 125,000 and 200,000 square feet. The pressure on the company to make a decision about its location is mounting, as local leaders express concerns about losing such a vital employer. The company has hinted at a desire for a “collaborative, modern environment” for its new space and is making public transit accessibility a priority in the search.
The board of Hasbro was scheduled to vote on the potential relocation of the headquarters on February 6. However, Rhode Island officials report that they have not received any updates from the company since that time. As Hasbro seeks to boost profitability and streamline operations, the upcoming decision regarding the headquarters location is expected to be communicated by the end of the first quarter in 2025.
As the situation unfolds, it remains critical for those in Pawtucket and the surrounding areas to stay informed about Hasbro’s plans, as its decision could have significant implications for both the community and the company’s future.
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