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Podcast #279: Hasbro Layoffs and D&D's Future
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<blockquote data-quote="Abstruse" data-source="post: 9222098" data-attributes="member: 6669048"><p>They won't because Wizards is propping up the company at the moment. They're the only profitable division of the company. The reason Alta Fox wanted Wizards spun off is so that shareholders of Hasbro would get shares of the new stand-alone Wizards of the Coast, thus meaning all the profit that WotC's making will go into shareholder dividends and not keeping the lights on for the rest of Hasbro's operations.</p><p></p><p>Also it's odd to me that Hasbro keeps getting singled out (or the people who don't read past headlines on social media and blaming Wizards of the Coast for the layoffs) for doing this when it's almost every company doing it. Growth must be constant or else the business is dying. Doesn't matter if a company is continuously profitable, it must be more profitable than it was last year or even last quarter. The line must always go up, growth must be eternal. It's what's caused a huge problem for Netflix - By the time of the pandemic, everybody who wanted a Netflix subscription had one so the market was saturated. Without new subscribers, though, the line doesn't go up. So they started raising prices and canceling shows and adding ads to the service in order to squeeze out more profit...which meant that they lost more customers than the new policies got them in profits. Combined with fewer people stuck in their homes so don't feel the need to pay ever-increasing monthly fees for a service they're barely using, it's creating a spiral for Netflix that culminated in the other tactic: Layoffs. Specifically shuttering their entire animation division.</p><p></p><p>Because it's an easy way to make the line go up. Lay off a bunch of employees and their salaries are no longer on the expenses for future earnings projections. Without their expense but with the projected sales and revenue the same, it makes the profit higher. It's also commonly done during the holidays because it gets those salaries off the next fiscal year's reports. It's not just Hasbro doing this, it's the vast majority of corporations who aren't experience organic growth. And unless something is done to regulate the market to prevent this "Line Go Up or Die" mentality, it's going to keep happening.</p></blockquote><p></p>
[QUOTE="Abstruse, post: 9222098, member: 6669048"] They won't because Wizards is propping up the company at the moment. They're the only profitable division of the company. The reason Alta Fox wanted Wizards spun off is so that shareholders of Hasbro would get shares of the new stand-alone Wizards of the Coast, thus meaning all the profit that WotC's making will go into shareholder dividends and not keeping the lights on for the rest of Hasbro's operations. Also it's odd to me that Hasbro keeps getting singled out (or the people who don't read past headlines on social media and blaming Wizards of the Coast for the layoffs) for doing this when it's almost every company doing it. Growth must be constant or else the business is dying. Doesn't matter if a company is continuously profitable, it must be more profitable than it was last year or even last quarter. The line must always go up, growth must be eternal. It's what's caused a huge problem for Netflix - By the time of the pandemic, everybody who wanted a Netflix subscription had one so the market was saturated. Without new subscribers, though, the line doesn't go up. So they started raising prices and canceling shows and adding ads to the service in order to squeeze out more profit...which meant that they lost more customers than the new policies got them in profits. Combined with fewer people stuck in their homes so don't feel the need to pay ever-increasing monthly fees for a service they're barely using, it's creating a spiral for Netflix that culminated in the other tactic: Layoffs. Specifically shuttering their entire animation division. Because it's an easy way to make the line go up. Lay off a bunch of employees and their salaries are no longer on the expenses for future earnings projections. Without their expense but with the projected sales and revenue the same, it makes the profit higher. It's also commonly done during the holidays because it gets those salaries off the next fiscal year's reports. It's not just Hasbro doing this, it's the vast majority of corporations who aren't experience organic growth. And unless something is done to regulate the market to prevent this "Line Go Up or Die" mentality, it's going to keep happening. [/QUOTE]
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