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In a move that the company says will save $190 million a year, Hershey Co. (HSY) says they'll be moving a larger piece of the company production to Mexico.

The candy maker said that the restructuring plan will cut back about 1,500 jobs, and some plants will be closed. They added that it is a three-year plan that will cut production lines by about a third.

Hershey currently has employs approximately 13,000 people at 20 plants scattered around the U.S., Brazil, Mexico and Canada. The total cuts will equal 11.5 percent of the work force.
 
"We recognize this will involve considerable change over the next three years, and intend to make this transformation of our supply chain as smooth as possible for our employees and customers," said Richard H. Lenny, Hershey's president, chairman and CEO.

Hershey is the largest candy supplier in the U.S., but reported a large 10 percent drop in its fourth-quarter earnings because of slow sales. Part of the problem came last year when a Canadian plant had to recall product because of salmonella bacteria being found in it.
 
Analysts reactions were mixed with some believing the move will give them more money to invest in higher margin premium prodcuts, while others think that taking money out of the core business won't do anything to help them to move their key chocolate products.