Hershey 'to reduce payroll in China'

Hershey Co, the biggest chocolate maker in North America, will cut about 2,700 jobs from its global work force because of declining overseas sales, especially in China where its 2013 purchase of Shanghai Golden Monkey (SGM) has turned out to be more of a problem than a business builder.

The company said on Tuesday that the implementation of its "Margin for Growth" program will reduce its global workforce of about 18,000 by approximately 15 percent, primarily in its hourly headcount outside of the US. Hershey didn't specify where the job cuts would occur.

JP Morgan analyst Ken Goldman said he believed many would come from SGM, the Associated Press reported. Hershey CEO Michele Buck said the China business would undergo a transformation over the next three years, according to Reuters.