Hershey global cuts expected at 15 percent
Hershey says it expects to cut its global workforce by about 15 percent, with the reductions coming mostly from hourly employees outside the United States.
The Pennsylvania-based maker of Reese’s, Kit Kat and Twizzlers also cut its long-term sales growth forecast to between 2 percent and 4 percent, down from the previous 3 percent to 5 percent. Hershey, which gets the majority of its revenue from North America, attributed the lowered expectations to “changes in U.S. shopping habits” and challenges overseas.
The job cuts, which could come to about 2,700 workers, are part of Hershey’s plan to improve its operating profit margin over the next three years.
McDonald’s lays out plan to spur future business
McDonald’s acknowledged yesterday that it lost 500 million customer transactions in the U.S. since 2012 and laid out its plans to get more people back into its restaurants — including by letting them order and pay on their mobile phones by the end of the year.
The world’s biggest burger chain said during its investor day in Chicago that it lost some of its loyal fans to other major fast-food chains, rather than to newer rivals. It also said it will more aggressively market items such as coffee and pastries to draw customers, and hinted that it is looking to expand delivery in major markets.
McDonald’s outlined its plans after having recorded its fourth straight year of declining guest counts at established U.S. locations in 2016, despite the fanfare over the rollout of an all-day breakfast menu. The company also trimmed its domestic store base for the second year in a row.