Hershey Layoffs: Hershey Co (HSY) to Cut 2,000+ Jobs

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Hershey Co (NYSE:HSY) has announced that it will be initiating some Hershey layoffs in order to cut costs.

Hershey Layoffs, Hershey Co, HSY

The decision will have the company reducing its workforce by 15%, which comes to more than 2,000 jobs. The employees that will be hit by the Hershey layoffs will mostly be hourly ones outside of the United States. This is part of its new multiyear “Margin for Growth” plan.

The Hershey layoffs are expected include $80 million to $100 million in separation benefits for employees. This is part of its expected total cumulative pre-tax charges of $375 million to $425 million for the Margin for Growth plan.

The Margin for Growth plan and Hershey layoffs are expected to help the company save money. HSY estimates that it will see a yearly run-rate ranging from $150 million to $175 million by the end of 2019.

“We’re working to return our international businesses to profitability as soon as possible,” Michele Buck, Hershey Co’s incoming President and CEO, said in a statement. “Combined, these efforts should enable the company to achieve its adjusted operating profit margin target of about 22% to 23% by year end 2019.”

Hershey Co also reaffirmed its outlook for fiscal 2017 when it announced the Hershey layoffs. The company is expecting earnings per share for 2017 to be between  $4.72 and $4.81. Wall Street is expecting earnings per share of $4.79 for the year.

Hershey Co is also expecting revenue for fiscal 2017 to increase by 2% to 3% when compared to fiscal 2016. This translates to revenue expectations ranging from $7.59 billion to $7.66 billion. Analysts are expecting HSY to report revenue of $7.61 billion for the fiscal year.

HSY stock was up slightly as of Wednesday morning.


Article printed from InvestorPlace Media, https://investorplace.com/2017/03/hershey-layoffs-hsy/.

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