No Happy Holidays for Hasbro After Toys 'R' Us Collapse
*By Bridgette Webb*
These are troubling times for Hasbro.
The toy maker announced Monday that it will lay off up to 10 percent of its employees as it ー and the industry at large ー adjusts to a tougher marketplace without Toys "R" Us.
"The moment of truth has arrived to see if their business can survive this type of shock," Nathan Bomey, business reporter for USA Today, said Monday in an interview on Cheddar.
"I don't think that anyone expects them to face a serious crisis, but this is a test as powers shift to companies like Amazon ($AMZN) and Walmart ($WMT) and Target ($TGT) in the toy industry."
Hasbro ($HAS) has not yet disclosed how many of its 5,400 global employees will be out of the job. But the company said that it expects the cuts to save between $30 million to $40 million a year by 2020.
The company also reported revenue of $1.57 billion for its latest quarter, way below analysts' expectations of $1.71 billion and down 12 percent from a year ago. Sales internationally were down 24 percent.
With the troubles at Toys "R" Us, many have suggested that toy makers re-direct their efforts to bigger sellers like Amazon and Walmart. But Bomey said the real issue is not where companies sell their products, but rather if those products still hold the same demand.
"\[What matters\] is ultimately if kids want to play with toys at all," he said.
"\[It's\] an existential crisis, if you will, because with iPads and iPhones taking over kids' playtime, ultimately they will have to figure out if they can create the digital products that will connect with kids."
For full interview [click here](https://cheddar.com/videos/hasbro-is-still-hurting-from-toys-r-us-closure).
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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