Hershey Co is laying off some workers this week By Reuters

By Jessica DiNapoli

NEW YORK (Reuters) – A Hershey spokesman said on Thursday the chocolate maker had laid off a small number of employees this week as part of organizational changes the company announced earlier this year when prices in cocoa reached record levels.

This week’s layoffs, which were not previously reported, affected less than 1 percent of about 20,000 workers at the maker of Hershey’s candy and Reese’s peanut butter cups, a company spokesman told Reuters.

In a statement related to the layoffs, Hershey said it remains focused on transforming its business.

“As part of this transformation, we are making significant changes to evolve our capabilities, systems and ways of working to become a leading snacking power,” said producer Kisses. Hershey also sells Dot’s Pretzels and Pirate’s Booty Popcorn.

The Hershey, Pennsylvania-based company announced in February that it would cut jobs and incur costs related to a productivity initiative aimed at generating $300 million in savings by 2026. The initiative also aims to improve the chain supply and production-related expenses.

The chocolatier has raised prices on its candies to offset rising costs over the past few years. Consumers continued to buy popular delicacies despite the increases, but sentiment has changed in recent months. In August, Hershey cut its annual profit and sales forecast and reported a 17% drop in sales.

Hershey also signaled it would have to raise prices again to offset rising cocoa costs caused by a bean disease in Africa.