In an effort to better connect its long-term development ambitions with its current workforce, Hershey is reorganizing a limited number of positions.
The producer of Reese’s and Dot’s Pretzels has announced that it would be laying off around 200 employees, which is equivalent to one percent of its staff of 20,000 workers. At the same time, Hershey announced that it intends to create hundreds of new positions in sectors that are seeing development, such as data science and technology.
According to a statement released by the firm, “We continue to be solely focused on transforming our business in order to better position Hershey for success.” As a component of that transition, we are implementing significant changes in order to advance our capabilities, systems, and methods of operation in order to become a leading snacking powerhouse.
In an earlier announcement, Hershey, which also sells Kisses, SkinnyPop, and Heath, stated that it will reduce expenditure across all aspects of its company, including its supply chain and production, while simultaneously utilizing new technology and other methods to simplify and automate procedures. Its objective is to accumulate savings up to $300 million.
In February, the corporation said that it intended to reduce the number of positions it had available, although it did not indicate how many positions would be eliminated. During that time period, Hershey stated that it anticipated incurring employee severance and related separation benefits of up to sixty million dollars.
Hershey, like other firms in the food and beverage industry, has increased its pricing in order to compensate for an increase in expenses, most notably in the chocolate industry. Additionally, clients who are struggling to make ends meet have reduced their purchasing, which has been a burden for the Pennsylvania firm.
A month ago, the multinational confectionery and salty snack company made a reduction in its annual profit and sales prediction for the year 2024. When compared to the same period in the previous year, the company’s net revenues for the second quarter, which ended on June 30, reached $2.1 billion, representing a 17% decrease.