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Hershey moving to Mexico?-Truth!

Hershey’s Chocolate Is Moving Some Operations from the U.S. to Mexico-Truth!

Summary of eRumor:

The eRumor laments that the American Hershey company that makes Hershey chocolate products is moving to Mexico.

The Truth:

There is a significant move by Hershey from the United States to Mexico in what the company calls a “global supply-chain transformation.”   Not all the operations are making the move but according to a June, 2007 article in the Los Angeles Times about 3,000 of the company’s 13,000 employees will be cut.

About 900 workers are to lose their jobs in the company’s home town of Hershey, Pennsylvania and the Hershey plant in Oakdale, California, is closing down.  Operations there are being moved to Monterrey, Mexico.

The times quotes Hershey CEO Richard Lenny as saying that labor costs in Mexico are 10 percent less than in the U.S. and that by 2010 the changes will save shareholders $190 million.