Hasbro (NASDAQ:HAS) announced the elimination of approximately 15% of its global workforce this year as part of a large-scale organizational restructure. The reductions will start to take effect within the next several weeks.

The toy giant said the actions, along with ongoing systems and supply chain investments, puts it on track to achieve its goal of $250M to $300M in annual run-rate cost savings by the end of 2025 to drive profitability and reinvestment in core brand growth.

“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 Hasbro CEO Chris Cocks.

Hasbro (HAS) also released preliminary Q4 earnings results. The company said preliminary Q4 revenue was down 17% year-over-year to $1.68B vs. $1.93B consensus. Wizards of the Coast and Digital Gaming segment revenue was up 22% to approximately $339M. Consumer products segment revenue was down 26% to approximately $1.0B. Entertainment segment revenue fell 12% to approximately $335M. Hasbro (HAS) also reported a preliminary adjusted operating profit margin of 15.8% to 16.0% and preliminary adjusted earnings per share of $1.29 to $1.31 vs. $1.49 consensus.

Shares of Hasbro (HAS) dropped 9.65% in postmarket trading to $57.63. Toy rival Mattel (MAT) was down 3.30% in sympathy.