The Hershey Company released news earlier this week. Hershey’s, as it is more commonly known, is planning on cutting about 15 percent of its workplaces, around 2,700 jobs, at a global level. The company will reportedly mostly target part time jobs, ones outside of the United States.
Until 2005, The Hershey Company was known as the Hershey Foods Corporation. However, no matter its name, the company is known for being one of the largest chocolate manufacturers in the whole North America. Hershey’s was founded in 1894 and is based in Hershey, Pennsylvania.
Presently, the company’s products are sold in more than 60 countries all over the world. Hershey’s is also a member of the World Cocoa Foundation and the initiator of the Hershey’s Chocolate World.
According to a public filing from December 2016, Hershey employs around 18,000 people. The workplaces are spread all over the world. Around 16,300 of them are full-time workplaces and about 1,680 are part-time. But the company is planning on reducing its number of jobs.
This is all according to a statement revealed on Tuesday. On February 28th, Hershey stated that it will be looking to cut back on its workplaces with about 15 percent. Based on the December fillings, this would amount to around 2,700 jobs.
Hershey’s went to offer details and an explanation for its decision. The company stated that the cuts would mostly be driven by its “hourly headcount outside of the United States”. These layoffs will be part of a larger plan. One which is trying to help the company’s international businesses.
Hershey’s is trying to return its international affairs back to profitability “as soon as possible”. This is according to Michele Buck, the Hershey CEO. These job cuts will also be helping the company boost its profits.
Hershey’s most recent earnings call was released on February 3rd. At the time, it beat the Wall Street market estimates. So far, the company has been on an upwards trend. The Hershey stock value increased by 4.8 percent in 2017.
Presently, the company is looking to take cost-cutting measures. These should help ensure its current trend and drive its net profits and sales. The decision to cut back on its international jobs number, especially its part-time workplaces, could be explained with help from the most recent earnings call.
As stated in February, Hershey’s international businesses are being weighed down by a number of factors. One is the unfavorable currency rates. Macroeconomic factors were presented as being other contributing reasons. These latter are reportedly mostly affecting its China business.
As it is, Hershey offered just a preliminary statement. More news on the matter should follow later on Wednesday or over the following days. On March 1st, the Hershey Corporation will be holding an investors conference. This will be taking place in New York and it will reportedly target the company’s cost savings plan.
As such, the conference should provide more details about this future layoff. And it may also present additional measure taken by the company in order to maintain and increase its value and profitability.
Hershey’s is reportedly trying to reach an adjusted profit margin coming as high as up to 23 percent. This should be accomplished by the end of 2019. In comparison, in 2016, the company had a 20 percent such profit margin.
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