Entertainment One Cuts 20 Percent of Workforce Ahead of Sale

Etan Vlessing
·2 min read

Entertainment One has cut around 20 percent of its workforce as parent Hasbro implements its cost reduction plan at the toy maker.

“This workforce reduction is part of the ongoing transformational changes Hasbro announced in January to substantially reduce costs and increase growth rates and profitability,” Hasbro spokesperson Roberta Thomson told The Hollywood Reporter in a statement on Thursday.

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In Jan. 2023, Hasbro said it would cut its workforce by 15 percent, or 1,000 employees. The significant layoffs were part of a larger restructuring and cost-savings effort underway, with the company having already put its TV and film division Entertainment One up for sale. (The layoffs that were disclosed on Thursday were part of the January plan.)

Sources at the toy maker say the cost-cutting at eOne is not related to the planned sale of film and TV unit. Hasbro acquired the Toronto-based studio in 2019, which houses most of its entertainment assets and announced its intention to sell it in mid-November 2022.

That process was jump-started by eOne founder Darren Throop announcing he would finish out his employment contract and then leave the company at the end 2022. As part of the planned sale, Hasbro expects to retain key assets from eOne such as the Peppa Pig, Transformers and Dungeons & Dragons brands.

Throop has been in talks to acquire the film and TV production and distribution unit back from Hasbro. The company retained J.P. Morgan and Centerview Partners to assist with the sale process.

Hasbro initially acquired eOne to grow the toy maker into a media contender as it combined the indie studio’s film and TV unit with its own. The idea to become a Hollywood producer à la Marvel Studios was spearheaded by former CEO Brian Goldner, who died in October 2021.

The pandemic disrupted that media strategy, with a Hollywood production shutdown and delays in content deliveries as the industry reopened. Hasbro has now turned its focus to becoming a digital gaming powerhouse after fending off a proxy battle with an activist investor, Alta Fox Capital Management.

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