Hershey To Cut 15% of Global Workforce in Restructure

Amid adjustments to its sales growth target for 2017, The Hershey Company announced a new restructuring effort Tuesday, including plans to cut its global workforce by 15%, primarily hourly workers outside of the United States.

Part of the Hershey, PA company’s “Margin for Growth” program, the move is expected to impact thousands of jobs. Its net sales growth target outlook was revised from 3% to 5% to 2% to 4% due to “changes in U.S. shopping habits and continued macroeconomic challenges impacting growth in international markets,” a press release announcing the plan said.

The Chicago Tribune reported that the cuts could total 2,700 jobs.

“Hershey has tremendous assets – it’s iconic brands, remarkable people and a history of operational excellence – that position the company well to deliver top- and bottom-line growth,” said Michelle Buck, incoming president and chief executive officer of the Hershey Company, in a statement. “We’re making progress against the ‘Margin for Growth’ related initiatives that should give us the flexibility to invest in certain parts of our business.”

“Our objective is to ensure that we always have the right level of innovation, marketing plans, and consumer and customer expertise to drive net sales growth, especially in our North America confectionary and snacks business. In addition, we are working to return our international businesses to profitability as soon as possible,” said Buck.

The incoming president said the efforts should result in the company achieving its adjusted operating profit margin target of 22% to 23% by the end of 2019.

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