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FINANCIAL NEWS
Hershey to eliminate 5% of workforce
15 Jun 2010
(MENAFN) An official at Hershey Co. said that the company plans to cut 600 jobs, or up to 5 percent of its workforce, as part of a restructuring aimed at upgrading and enlarging its facilities to compete globally and save some $60 million to $80 million in annual costs, Reuters reported.
According to the official, Hershey plans to invest $250 million to $300 million on modernizing and expanding its plant. The company will chalk up a realignment and start-up costs of $140 million to $170 million over the next three years.
Much of Hershey’s expected capital investment will go toward a $200 million to $225 million expansion of its existing West Hershey, Pennsylvania plant. The company said it will begin realizing annual savings of $60 million to $80 million by the end of the restructuring effort, around 2014.
It is worth mentioning that Hershey employs more than 12,000 people around the world.
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