Pennsylvania-based candy company Hershey said it will cut about 300 jobs by the end of 2015.
“Removing cost and complexity from our business will make us more flexible to quickly react to changing consumer and competitive marketplace trends,” said John P. Bilbrey, chairman, president and CEO of The Hershey Company. “We are confident these changes will extend our position as a global confectionery leader and create a Hershey that is even more innovative, entrepreneurial and better positioned to continue to deliver sustainable, profitable growth in an ever-changing marketplace for the long-term benefit of all of our stakeholders.”
The company, whose brands include Reese’s, York, KitKat, Twizzlers and its namesake brands, did not specify where the jobs would be cut from. Hershey employs about 13,000 people worldwide.
Hershey said it expects the cuts to cost the company between $100 million and $120 million in pretax charges, but anticipates $65 million to $75 million in savings, primarily in 2016, of which a portion will be reinvested back into the company.
The cuts are part of a new productivity initiative the company announced Friday that is meant to drive long-term growth and margin-enhancement.
Hershey also reduced its revenue outlook for 2015. The company estimates its 2015 net sales will increase about 2.5 percent to 3.5 percent. Excluding unfavorable foreign currency exchange rates, full-year net sales are expected to increase about 4 percent to 5 percent. This is less than the previous estimate of 6 percent to 7 percent.