Entertainment One (eOne) is undergoing a “workforce reduction” ahead of parent company Hasbro’s planned sale of its film and TV assets.

A spokesperson from Hasbro confirmed to Playback Daily that the studio is laying off approximately 20% of its film and TV staff.

“This workforce reduction is part of the ongoing transformational changes Hasbro announced in January to substantially reduce costs and increase growth rates and profitability,” said Abby Hodes, Hasbro’s VP, global communications.

Neither eOne nor Hasbro responded to a press inquiry on whether the cuts will impact the studio’s Canadian employees.

Hasbro announced on Jan. 26 that it would lay off approximately 15% of the global workforce in 2023, which would “start to take effect within the next several weeks.”

The company unveiled plans last November to sell eOne’s film and TV assets while retaining certain IP, including the Peppa Pig franchise.

The sale includes eOne’s more than 6,500-asset content library, the “non-Hasbro branded” scripted film and TV assets, Hasbro’s interest in eOne’s Canadian film and TV business, and eOne’s unscripted division. Banking firms J.P. Morgan and Centerview Partners have been retained to assist with the sale.

Hasbro CEO Chris Cocks previously told investors that the toy giant would have an update on the potential transaction in Q2.