Hershey Layoff Insights: Know Your Rights
What is the reason for Hershey’s Layoffs?
Hershey, the iconic chocolate maker, recently announced a small round of layoffs as part of broader organizational changes aimed at positioning the company for future success. The layoffs, which impacted fewer than 1% of Hershey’s nearly 20,000 employees, come as the company navigates challenges posed by rising cocoa prices and evolving market conditions.
Known for popular treats like Reese’s Peanut Butter Cups, Kit Kat, and Hershey Kisses, the Derry Township-based company is undergoing a strategic shift. In a statement to PennLive, Hershey emphasized its commitment to transforming its business operations, stating, “We are focused on evolving our capabilities, systems, and ways of working to become a leading powerhouse in the snacking industry.”
Why did Hershey’s net sales decline in the second quarter?
The restructuring is part of a two-year initiative aimed at boosting efficiency and enhancing automation, which Hershey had announced earlier in the year. As part of this plan, layoffs are expected to affect less than 5% of its workforce overall.
In the second quarter of this year, Hershey reported a 16.7% drop in net sales, amounting to $2.07 billion. The company attributed this decline to shifting consumer spending patterns, with more people pulling back on non-essential purchases. Hershey’s CEO, Michele Buck, noted the complexity of today’s economic environment, adding that the company is adapting to changes in consumer behavior.
Despite these challenges, Hershey is making significant investments in its future. The company is currently constructing a new 250,000-square-foot facility in Derry Township, which will focus on manufacturing fan-favorite products like Reese’s, Kit Kat, and Hershey’s chocolates. This development is a key part of Hershey’s long-term strategy to strengthen its position in the snacking market.
Laid Off Recently? Understand Your Severance Rights
If you’re a non-unionized Hershey employee in Canada and facing job loss due to restructuring or downsizing, you may qualify for a severance package. The amount of severance pay you receive can vary based on several factors, potentially reaching up to 24 months of compensation. In Ontario, if mass layoffs affect 50 or more employees, you could be eligible for additional severance benefits.
At Whitten & Lublin, our experienced employment lawyers are here to help you navigate this difficult situation. We will ensure you fully understand your rights and strive to secure the severance you deserve. If you’ve been affected by recent layoffs, don’t hesitate to contact us for a consultation through our online portal or by calling (416) 640-2667.