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Hershey is cutting a few jobs to better align with its long-term growth plans.
The maker of Reese’s and Dot’s Pretzels said it would lay off about 200 of its 20,000 employees, or 1%. At the same time, Hershey said it plans to add dozens of new roles in growth areas like technology and data science.
“We remain focused on transforming our business to help Hershey succeed,” the company said in a statement. “As part of that transformation, we are making meaningful changes to become a leading snacking powerhouse by evolving our capabilities, systems and the way we work.”
Hershey, which also sells Kisses, SkinnyPop and Heath, previously announced it would curb spending in parts of its business, including supply chain and manufacturing, and use new technologies and other practices to streamline and automate processes. The goal is to save $300 million.
In February, the company said it planned to cut its workforce, but did not specify how many people would be cut. Hershey said at the time that it expected to incur up to $60 million in severance pay and related separation pay.
Like other food and beverage companies, Hershey has raised prices to offset rising costs, particularly in cocoa. Cash-strapped consumers have also cut back on spending, putting a strain on the Pennsylvania company.
The confectionery and savory snack giant last month cut its full-year profit and revenue forecasts for 2024. Net sales for the second quarter ended June 30 were $2.1 billion, down 17% from the same period a year ago.
