Dive Brief:

• Wayne, NJ-based Toys 'R' Us will give its current employees and seasonal workers a chance at extra hours this holiday season and will hire fewer temporary seasonal workers as a result, the toy retailer said Tuesday. Hiring has already begun for the holiday season.

• The retailer does plan to hire some 40,000 seasonal workers to help its stores and distribution centers during the busy season, down from 45,000 last year.

• The retailer says that seasonal workers are mostly part-time, working 18 to 20 hours each week, 30 hours at the busiest times. Some 20% of the seasonal workforce stayed on for the year, the company says. 

Dive Insight:

Toys 'R' Us has been struggling in recent quarters, fighting off competitors like Amazon and Wal-Mart that sell the same toys at lower prices and contending with a slowing birth rate, which cuts into its consumer demographic. It’s hard to know if the news of less hiring at the holidays is an attempt to tamp down seasonal expenses or a efficient way to handle the extra pressure. With employment up, retailers and delivery companies could face demand for higher wages and better working conditions this year.

But the retailer has also pivoted to increase its line of private-label toys — a few that have been hits — in an effort to offer more unique merchandise. That move could be the right answer, especially if the retailer can give shoppers what they’re looking for. And it’s bringing its e-commerce operations in-house, which could help the company boost its omnichannel operations to what it needs to be.