TORONTO — Toy maker Spin Master Corp. has announced job cuts across its operations as it seeks to navigate the adverse effects of global tariffs impacting its business model. The company, which is well-known for its popular brands such as Hatchimals, Gabby's Dollhouse, and Monster Jam, is taking significant steps in response to the financial pressures created by tariffs, particularly those imposed on imports from China.

In an email statement provided by spokeswoman Tammy Smitham, details regarding the exact number of employees affected by the layoffs were not disclosed. However, she emphasized that these job reductions are only one element of a broader strategy aimed at mitigating the financial impact of tariffs. This multi-faceted plan includes not only workforce reductions but also initiatives to diversify the company’s supply chains and implement cost-cutting measures.

In a previous statement made last month, Spin Master noted that the U.S. tariffs on countries where it produces toys, with China being a significant focus, have complicated its financial forecasts to the extent that the company has decided to withdraw its guidance for the remainder of the fiscal year. This uncertainty has prompted Spin Master to reassess its operational strategies, particularly its dependency on China for production.

Additionally, in February, the company announced it would be winding down a games studio in Sweden. This decision was attributed to the high costs of acquiring new users, which placed an undue burden on revenue generation. The wind-down of this studio demonstrates the ongoing challenges the company faces in a competitive market and highlights its need to streamline operations.

Looking ahead, Spin Master has articulated a clear goal of dramatically reducing its reliance on Chinese production within the next two years. This strategic pivot is intended to better position the company in light of ongoing trade tensions and to explore alternative manufacturing options in different regions.

The situation at Spin Master reflects broader trends within the toy industry and other sectors heavily reliant on global supply chains. As companies contend with rising tariffs and shifting economic conditions, many are reevaluating their operational strategies to enhance resilience and secure long-term sustainability.

This report was first published on June 3, 2025, providing insight into the current challenges faced by Spin Master Corp. as it adapts to an evolving economic landscape.