Hershey looking to cut about 300 jobs
June 19, 2015 by Manufacturing AUTOMATION
Jun. 19, 2015 – Hershey has announced it will cut about 300 jobs by the end of the year as it looks to simplify its operations. The chocolate and candy maker did not specify where the job cuts would come from, but said manufacturing operations are not included in the plans as “efficiencies were attained through previous productivity programs.”
This new “productivity initiative” is part of the company’s ongoing efforts to drive long-term growth and margin-enhancement, it said, which are intended to ensure Hershey’s ability to rapidly anticipate and respond to the changing demands of the global consumer.
The company has approximately 22,000 employees globally.
“Removing cost and complexity from our business will make us more flexible to quickly react to changing consumer and competitive marketplace trends,” said John Bilbrey, chair, president and CEO.
The company — whose brands include Reese’s, Twizzler and its namesake — said it will face an estimated $100 million to $120 million in pretax charges related to the job cuts. It anticipates $65 million to $75 million in savings, mostly in 2016, and plans to reinvest part of the funds back into the business.
Hershey maintains that a slowdown in China’s economy is keeping people from buying its goods.
— With files from The Canadian Press