News

Hershey expects to cut 15 percent of global workforce

Written by The Associated Press | Mar 1, 2017 11:18 AM

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Photo by Jeremy Long, Lebanon Daily News

The Hershey Company officially opened up its 19 East office building in downtown Hershey on Thursday. The site was Milton Hershey's original chocolate factory.

(Hershey) -- Hershey expects to cut its global workforce by about 15 percent, with the reductions coming mostly from hourly employees outside the United States.

The Pennsylvania chocolate maker also trimmed its forecast for long-term sales growth to between 2 percent and 4 percent, down from the previous 3 percent to 5 percent. The company attributed the lowered expectation to changes in U.S. shopping habits and macroeconomic challenges overseas.

CEO Michele Buck will discuss the measures in New York when she meets with analysts Wednesday.

The maker of Hershey chocolate bars and other candies said a smaller workforce is part of its effort to streamline the company and improve its operating profit margin. Hershey is expecting pre-tax charges of up to $425 million over the next three years as a result of the plan, which includes the costs of closing plants and offices and other expenses related to job cuts.

Hershey Co. operates eight factories outside the U.S. As of December, Hershey employed approximately 16,300 full time and 1,680 part-time employees worldwide. A 15 percent workforce reduction would therefore represent about 2,700 employees.

An earlier story is below:

The Hershey Company could cut 15 percent of its global hourly workforce, primarily outside the United States.

The Dauphin County-based company says chief executive Michele Buck will have more to say on the plan when she briefs analysts in New York today.

In a statement, the marketer of Hershey chocolate bars and other candies said the layoffs are part of a program designed to improve the operating profit margin through a streamlined operating model and reduced administrative expenses.

Hershey operates eight factories outside the US.

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