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Hershey is restructuring a small number of jobs to align with its long-term growth plans.
Hershey’s, maker of Reese’s & Dots Pretzels, said it would lay off about 200 employees, or 1% of its 20,000 workers, but said it plans to add dozens of new roles in growth areas such as technology and data science.
“We remain focused on transforming our business to better position Hershey’s for success,” the company said in a statement. “As part of that transformation, we are making meaningful changes and evolving our capabilities, systems and ways of working to position us as a leading snack company.”
Hershey, which also sells Kisses, Skinny Pop and Heath, previously said it would rein in spending across its business units, including supply chain and manufacturing, and use new technology and other techniques to streamline and automate processes, with the goal of saving $300 million.
The company said in February it planned to cut jobs but did not disclose how many. At the time, Hershey noted it expected to incur up to $60 million in severance and related separation benefits.
Like other food and beverage companies, Hershey has raised prices to offset rising costs, particularly for cocoa. Cash-strapped consumers are also cutting back on spending, weighing on the Pennsylvania company.
The confectionery and salty snacks giant last month It lowered its 2024 annual profit and sales forecasts.Net sales for the second quarter ended June 30 were $2.1 billion, down 17% from the same period last year.
