NEW YORK – Hasbro, one of the world’s largest toymakers, said it would cut 15 per cent of its workforce, or about 1,000 jobs, after a disappointing holiday shopping season.

The company also projected it would fall short of fourth-quarter adjusted profit estimates, making US$1.29 to US$1.31 a share compared with the US$1.49 that analysts were expecting. Sales for the fourth quarter are expected to be down 17 per cent to US$1.68 billion (S$2.2 billion). The cuts will begin in the next few weeks, Hasbro said in a statement on Thursday.

The company said that while its digital gaming business, including Dungeons & Dragons and Magic The Gathering, performed well, its traditional toy business faltered.

“Despite strong growth in Wizards of the Coast and digital gaming, Hasbro Pulse and our licensing business, our consumer products business underperformed in the fourth quarter against the backdrop of a challenging holiday consumer environment,” said Mr Chris Cocks, Hasbro’s chief executive officer.

Changes to its business plan are expected to result in charges of approximately US$300 million. In addition, the company has projected approximately US$78 million in charges due to the workforce reduction. As part of the changes, president Eric Nyman is leaving the company. The consumer products business will report directly to Mr Cocks.

Hasbro shares fell about 6 per cent in after-hours trading. The company is due to report its fourth-quarter results on Feb 16. BLOOMBERG