Feb 16, 2007

Layoffs - Hershey Kisses Workers Adios

The Hershey Company (HSY) announced a restructuring plan that includes downsizing the company from its current level of 13,000 workers to 11,500. The plan also calls for reducing U.S. and Canadian production from 90% to 80%. The 10% shortfall in capacity will be picked up by a new plant that should open in September of this year in Monterrey, Mexico.

As spokesperson for Hershey, Kirk Saville came off as indifferent in his statements to writer, Peter Jackson in his
Associated Press article:

“Saville declined to discuss any details about the job cuts or the Mexico plant…. He said: Some will be expanded, some will be downsized and some will close, … We will communicate with our employees and (their) union representatives,"

Since the “workforce reduction” of 1,500 would also include the additional workers to be hired in Mexico, the U.S. and Canada cuts will have to be more than the quoted 1,500. Also quoted from the
AP article:

“Dennis Bomberger, business manager for Chocolate Workers Local 464, which represents 2,500 workers at Hershey plants in Hershey and Reading, speculated that the actual job cuts could have to be deeper to achieve a net work force reduction of 1,500.”

"They're going to gain some jobs in Mexico ... so there's going to be a higher number lost" in the U.S. and Canada, Bomberger said. "Whenever they move something out the country, that's not good news for any company from the workers' standpoint."

From an earlier
Reuters article written by Brad Dorfman:

“The moves come as the company looks to free up more money to spend on marketing as it tries to regain lost market share from archrival Mars Inc. The overhaul is expected to reduce annual costs by $170 million to $190 million by 2010.

“Hershey has been trying to increase sales by focusing on its traditional chocolate brands, while developing new lines like premium dark chocolate.”

“Hershey said it expects the new plant in Mexico to be running by September and to account for about 10 percent of the company's overall production by 2010. A spokesman declined to say how many people would work at the plant.”


Mike V said...

Want to help? Send a letter to CEO Richard Lenny and/or sign the petition at kissesforhershey.com.