Hershey plans to close plants, offices and other expenses in order to pay its pre-tax charges
Hershey plans to close plants, offices and other expenses in order to pay its pre-tax charges

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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