Why Toy Maker Hasbro's Shares Are Diving Today
Portfolio Pulse from Shivani Kumaresan
Hasbro Inc (NASDAQ:HAS) shares fell after announcing further strategic steps to restructure the company, including a revised organizational structure that will result in the elimination of 900 positions over the next 18 to 24 months. This follows a January 2023 announcement of cutting about 1,000 jobs, which incurred $94 million in expenses. The new job cuts are expected to save approximately $100 million annually, with total expected savings of $350 million to $400 million by the end of 2025. HAS shares dropped 5.3% in premarket trading.
December 12, 2023 | 11:53 am
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Hasbro Inc's stock price is likely to be negatively impacted in the short term due to the announcement of additional job cuts and restructuring efforts, despite the long-term cost savings goal.
The immediate negative reaction in premarket trading suggests that investors are concerned about the short-term costs and potential disruptions associated with the restructuring. While the long-term savings are significant, the short-term impact of additional expenses and the negative sentiment around job cuts are likely to weigh on the stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100