Hershey expects to cut workforce by 15 percent
Most of the cuts are expected outside the United States where Hershey operates eight factories.
The Hershey Co. plans a restructuring that could cut 15 percent of its global employees, the Pennsylvania company said in a statement on Tuesday.
Hershey employs 18,000 globally and the restructuring could lead to pre-tax charges of $375 million to $425 million and savings of $150 million to $175 million by the end of 2019.
Most of the cuts are expected outside the United States where Hershey operates eight factories.
New Hershey Co. chief executive Michele Buck will brief analysts on the company's plans at an investor day in New York on Wednesday.
Hershey, the marketer of Reese's peanut butter cups, Hershey chocolate bars and other brand-name candies, has faced waning growth in its chocolate business. In the summer of 2016, the company rejected a takeover offer by Mondelez International. Hershey sells most of its products in the United States.
The scandal-plagued Hershey School for poor children, one of the nation’s richest charities, owns a controlling stake in the Hershey Co. candy giant. Stock dividends from the Hershey Co. are the largest source of cash to operate the 2,000-student school.