Is This Game Over for Hasbro Stock?
It's been nearly a week now since Hasbro (NASDAQ: HAS) dropped a bombshell on the stock market, announcing layoffs, an executive departure, and an earnings warning -- and sending its stock down 8% in a day. (Note: The stock has since recovered all its losses. More on that fact below).
On Thursday last week, after trading was safely closed for the day, Hasbro revealed plans to lay off 15% of its global workforce -- 1,000 people -- in an effort to combat the cost of plunging sales at the toys and entertainment conglomerate. All of these layoffs, and all the costs attendant upon them, will hit the company's earnings this year. (On the plus side, Hasbro eventually expects the layoffs to help save it $250 million to $300 million in annual cost).
The company also announced that chief operating officer Eric Nyman will leave the company. No replacement was immediately named.
Source Fool.com
