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
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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