Hershey quietly announced it was laying off 15 percent of its global hourly workforce in an attempt to boost cost savings of $150 million to $175 million by the end of 2019.
CNN said that percentage works out to 2,700 people, based on the reported 18,000 people the company has employed worldwide, according to a December public filing.
The layoffs were tucked into a statement posted on Hershey's website before the chocolate company's investor conference in New York City on Wednesday, said PennLive.com on Tuesday. The employee reduction is part of Hershey's larger "Margin of Growth" program.
Hershey said the program "is designed to improve overall operating profit margin through supply chain optimization, a streamlined operating model and reduced administrative expenses."
"The company anticipates that the program will result in total cumulative pre-tax charges of $375 million to $425 million, including one-time employee separation benefits of $80 million to $100 million," said Hershey's website.
"The company estimates that implementation of the program will reduce its global workforce by approximately 15 percent driven primarily by its hourly headcount outside of the United States."
Hershey incoming president Michele Buck said the "Margin of Growth" program will allow the company to invest in parts of its business.
"Hershey has tremendous assets – its iconic brands, remarkable people and a history of executional excellence – that position the company well to deliver top- and bottom-line growth," Buck said in the statement.
CNN said in recent earning reports Hershey had been beating Wall Street estimates while chocolate giant's stock has jumped up 4.8 percent so far in 2017. The company stated that cost-cutting measures are being taken to drive net sales and profit.