Hershey Lowers Growth Forecast Amid Weaker Sales In China Slashes 300 Jobs

HERSHEY, PA -- North America's biggest chocolate-maker slashed its sales and profit outlook for 2015, citing weaker growth in China. Hershey Co. estimates net sales will increase by 2.5% to 3.5% this year, down from its previous prediction of 4.5% to 5.5%. It said slower-than-expected consumption trends and deteriorating economic growth are hurting sales in China.

Hershey also announced plans to cut 300 jobs from its workforce of about 13,000. It expects that the job cuts will save $65 million to $75 million, mostly in 2016. But the company said it would take charges of $100 million to $120 million related to the cuts.

The company's sluggish sales in China have been compounded by rising costs for ingredients, mostly dairy and cocoa.

"Removing cost and complexity from our business will make us more flexible to quickly react to changing consumer and competitive marketplace trends," said chief executive John P. Bilbrey.