06:48 AM EDT, 09/20/2024 (MT Newswires) -- Hershey Company ( HSY ) (HSY) laid off a small number of its employees this week as part of organizational changes conveyed in February due to record-high cocoa prices, Reuters reported Thursday citing a company spokesperson.

The layoffs impacted less than 1% of about 20,000 workers employed at the Pennsylvania-based chocolate maker, the spokesperson told Reuters.

According to the report, Hershey's productivity initiative that came earlier this year aimed to generate $300 million in savings by 2026, along with improving supply chain and manufacturing-related spending.

Reuters said the company has also signaled that it will have to raise prices again to offset increasing cocoa costs due to a bean disease in Africa.

Hershey did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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