Hasbro sources half of its toys and games sold in the U.S. from China. The toymaker has been speeding up efforts to diversify sourcing and cut costs.

Hasbro ( HAS) has reportedly laid off 3% of its global workforce as tariffs boost costs at the toy maker. According to The Wall Street Journal, the laid-off employees, who spanned departments and regions worldwide, were informed of the cuts on Monday.

Hasbro said it needs to cut costs and will be laying off about 150 people, or three percent of its workforce. The Pawtucket-based toy giant gets about half of its products from factories in china, but said it is working to diversify.