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Hasbro is laying off 1,100 employees, according to an SEC filing<\/a>. The company behind franchises like Dungeons & Dragons and Transformers, Hasbro already laid off 800 employees<\/a> in January. While some employees will find out about the fate of their jobs on Tuesday, others will be cut in the coming year. By 2025, Hasbro told shareholders, the company hopes to save about $350 million to $400 million in costs.<\/p>\n Hasbro CEO Chris Cocks wrote in a memo to employees<\/a> \u2014 shared within its SEC filing \u2014 that he will direct the company\u2019s attention toward licensing opportunities, scaling entertainment and \u201cfree[ing] up our own content dollars to drive new brand development.\u201d He blames the company\u2019s losses on vague \u201cmarket headwinds.\u201d<\/p>\n Hasbro\u2019s overall revenue declined 10% year over year. But, Hasbro owns Wizards of the Coast (WoTC), the company that makes Dungeons & Dragons (D&D) and Magic the Gathering, which brings in over a billion dollars<\/a> each year. In the division of the company that runs WoTC and digital gaming, revenue is up 40% year over year<\/a> to $423.6 million, netting a $203.4 million operating profit. Despite this huge growth, Hasbro as a whole has struggled. So, it seems Cocks is refocusing Hasbro\u2019s efforts on what actually is making the company money.<\/p>\n D&D has become increasingly popular over the last several years, in large part due to third-party content creators<\/a> like Critical Role and Dimension 20, in which an ensemble cast plays D&D for the audience\u2019s entertainment. The franchise also made a splash this year with a Hollywood film<\/a> and the hugely successful Baldur\u2019s Gate III<\/a>, a video game that licenses Dungeons & Dragons IP. Just last week, Baldur\u2019s Gate won Game of the Year<\/a> at the Game Awards.<\/p>\n Hasbro finds itself at an odd crossroads \u2014 its toys business is declining, yet it suddenly has an unexpected cash cow on its hands in Wizards of the Coast, which it bought 24 years ago.<\/p>\n \u201cThe D&D strategy is a broad four-quadrant strategy, where we have this powerful brand that has similar awareness, say like \u2018Lord of the Rings\u2019 or \u2018Harry Potter,\u2019\u201d said Cocks on an investor call<\/a> last December, which gave us an insight into the company\u2019s plans. But there are growing pains in Hasbro\u2019s attempt to turn Dungeons & Dragons \u2014 a game system where groups of players develop their own plot and characters \u2014 into something like Harry Potter and Lord of the Rings, where every fan knows the same characters and stories. While the movie \u201cDungeons & Dragons: Honor Among Thieves\u201d got good reviews when it came out in March, it ultimately underperformed<\/a> at the box office.<\/p>\n \u201cTo position Hasbro for growth, we must first make sure our foundation is solid and profitable,\u201d Cocks wrote in the company memo. \u201cTo do that, we need to modernize our organization and get even leaner.\u201d<\/p>\n<\/p><\/div>\n