By Josh Fineman
Feb. 15 (Bloomberg) — Hershey Co., the largest U.S. candy maker, will close more than a third of its assembly lines and eliminate 12 percent of its workforce after sales fell for the first time in 3 1/2 years.

The maker of Hershey’s Kisses and Reese’s Peanut Butter Cups will cut 1,500 jobs over the next three years and start production at a new factory in Monterrey, Mexico. The reductions will cost as much as $575 million before taxes, the Hershey, Pennsylvania-based company said in a statement today.

Hershey lost market share last year to Mars Inc., the maker of Snickers, and last month reported a fourth-quarter sales decline of 0.7 percent.

“Hershey is under intense pressure,” said Marvin Roffman of Roffman Miller Associates in Philadelphia, who follows Hershey and manages more than $410 million in assets. “If your costs are squeezing you, you have to find ways to save money.”

Hershey expects the reductions to save it $170 million to $190 million annually by 2010. The company estimates $300 million of the expenses will occur this year. Hershey will close some factories, spokesman Kirk Saville said. He declined to be more specific.

H/T Bur$atil for all his links!

Then there’s this:
WASHINGTON (AP) The Labor Department reports that the number of newly laid off workers filing claims for unemployment benefits jumped by 44,000 last week, the biggest gain in 17 months.