Disney Toy Sales Force 1,100 Layoffs

When it is reported that a new Disney (or Pixar or Star Wars or Marvel) movie has a bad run at the box office, most of the news story focuses on ticket revenue.

However, the impact of a standard box office flop is much more significant than just the opening weekend ticket sales. A failed movie will have ripples throughout a company (not just Disney). It could and would impact multiple segments such as toy makers.

Related: ‘The Marvels’ Just Broke a Terrible Record

A Year of Box Office Bombs

For example, if the newest Disney movie, Wish (2023), doesn’t leg out and ends its run as a flop, it also means that the theme parks will never build a Wish-themed attraction.

It also means that Disney and other vendors will not make any money with merchandise featuring the characters. This includes stuffed animals, collectibles, Christmas ornaments, lunch boxes, and of course…toys.

Related: ‘Wish’ on Track To Be Disney’s Biggest Bomb of 2023

Hasbro Layoffs

Enter the recent layoffs of Hasbro, one of the world’s leading toy companies. The toy maker Hasbro has multiple license agreements and partnerships with various properties – including The Walt Disney Company.

In January of last year, it was announced that the toy company Hasbro had extended its relationship with Lucasfilm (and already has a long-standing relationship with Marvel and Disney). But this past year, Lucasfilm’s most significant release, Indiana Jones and the Dial of Destiny (2023), was a box office bomb.

Related: Disney Getting Clobbered At the Box Office Again

As such, it’s safe to assume that kids, tweens, and teens who never made it to see the movie also never made an effort to purchase any toys or games associated with it. In other words, the lack of demand for the film or Disney+ shows results in a lack of demand for toys based on that IP.

Likewise, any agreements Hasbro had with Disney and Marvel regarding rights to make toys based on other box office failures, such as Antman and the Wasp: Quantumania (2023) and The Marvels (2023), likely didn’t make Hasbro much money.

Related: Disney World and Disneyland Will Suffer Because of ‘The Marvels’

The latest movie, Wish, is licensed to Mattel. However, the toy company Mattel also owns Barbie – the focus of this summer’s biggest blockbuster.

Related: ‘Barbie 2’ Starring Margot Robbie Future Confirmed

Today, it was announced that Hasbro has cut 20% of its employees. Regarding hard numbers, that’s about 1,100 jobs.

Hasbro also produces toys such as Transformers action figures, Play-Doh, and Dungeons and Dragons products. The overall toy sales for Hasbro has been down this year and holiday season. And although you can’t put it all solely on the shoulder’s of The Walt Disney Company’s poor box office, it certainly doesn’t help.

Hasbro CEO Chris Cocks said the following:

“I know this news is especially difficult during the holiday season. We value each of our team members – they aren’t just employees, they’re friends and colleagues. We decided to communicate now so people have time to plan and process the changes. For those employees affected we are offering comprehensive packages including job placement support to assist in their transition.”