Wed Sep 25 09:16:37 UTC 2024: ## Hershey to Automate, Cut Jobs to Boost Profits
**Hershey, the confectionery giant known for brands like Reese’s, announced a restructuring plan that will include layoffs and automation to drive productivity and reduce costs.** The company aims to generate $300 million in annual savings over the next two years by leveraging technology to automate processes and streamline manufacturing and supply chains.
While Hershey did not disclose the exact number of job cuts, they expect the layoffs to impact less than 5% of its workforce. The move will result in severance expenses between $45 and $60 million.
The restructuring comes as Hershey reported a 0.2% increase in fourth-quarter net sales to $2.65 billion, but a 11.5% drop in net income to $349 million. CEO Michele Buck attributed the decrease in profit to historic cocoa prices, but expressed confidence in the company’s future growth through marketing, innovation, and brand investment.
Hershey is aiming for a 2-3% increase in net sales growth in 2024. The company emphasized that the automation drive is part of a long-term strategy to improve efficiency and performance, with minimal disruption expected to its employee base.
This announcement follows Hershey’s decision last August to shut down a pretzel manufacturing facility in North Dakota, citing efficiency improvements for its Dot’s Homestyle Pretzels brand.
The move highlights the growing trend of automation across industries, as companies seek to optimize operations and reduce costs in a competitive landscape.
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