Hershey is shuffling around a small number of jobs to better align with its long-term growth plans.
The Reese’s and Dot’s Pretzels manufacturer said it is laying off about 200 people, or 1%, of its 20,000-person workforce. At the same time, Hershey 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 for success,” the company said in a statement. “As part of that transformation, we are making meaningful changes to evolve our capabilities, systems, and ways of working to become a Leading Snacking Powerhouse.”
Hershey, which also sells Kisses, SkinnyPop and Heath, had previously announced it would rein in spending across parts of its business, including its supply chain and manufacturing, while leveraging new technology and other practices to simplify and automate processes. Its goal is to generate $300 million in savings.
In February, the company said it planned to cut jobs, though it did not specify how many. Hershey noted at the time it expected to incur employee severance and related separation benefits of up to $60 million.
Similar to other food and beverage companies, Hershey has hiked prices to offset an increase in costs, most notably in cocoa. Cash-strapped consumers also have cut back on spending, which has weighed on the Pennsylvania company.
The confections and salty snacks giant last month reduced its annual profit and sales forecast for 2024. During its second quarter ending June 30, net sales totaled $2.1 billion, a decline of 17% from the same period a year earlier.
