Hershey Co. says it expects to cut its global workforce by about 15 per cent, with the layoffs coming mostly from hourly employees outside the United States.
The Pennsylvania-based chocolate company also lowered its forecast for long-term sales growth to between 2 and 4 per cent, down from the previous 3 to 5 per cent, J.P. Morgan analyst Ken Goldman noted.
The maker of Hershey chocolate bars and other candies said the layoffs are part of a program aimed at improving the operating profit margin through a streamlined operating model and reduced administrative expenses.
The company estimates it will incur pre-tax charges of up to USD 425 million over the next three years as a result of the plan, which includes the costs of closing plants and offices and other expenses related to the layoffs.
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