Mattel Inc (NASDAQ:MAT) shares are trading lower. The stock appears to be sliding alongside Hasbro Inc (NASDAQ:HAS), which announced a headcount reduction.
What Happened: Hasbro initiated a strategic review last year, which resulted in an operational excellence program. Following an additional review of the company’s cost structure and organizational design, Hasbro said it decided to take strategic steps to position the business for future growth.
The measures include additional headcount reductions and a revised organizational structure in which certain corporate functions are expected to be supported by a third-party outsourcing provider. Hasbro anticipates eliminating 900 positions over the next 18 to 24 months. The company expects $40 million in severance related expenses over that time.
These actions are expected to result in gross annual run-rate cost savings of approximately $100 million.
Both Hasbro and Mattel are toymakers. The two companies entered into a partnership earlier this year to create co-branded toys and games for major theatrical releases.
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Price Action: Hasbro shares were last down 3.85% at $47.01. Mattel shares were down 2.01% at $18.53 at the time of writing, according to Benzinga Pro.
Photo: 3844328 from Pixabay.
