Xerox has announced that it will be implementing a new structure and operating model that will see it cut around 15% of its workforce, equivalent to 3,075 employees. The company, which focuses on digital printing and document management tech, said that it had 20,500 employees at the end of 2022.
Xerox"s stock price had been recovering since October with the rest of the stock market but on the back of the announcement on Wednesday, its share price had fallen from $17.69 to $15.69. The overall market fell on Wednesday too but not by nearly as much as Xerox so its announcement could definitely have had an impact.
Xerox is not the only company that has been laying off employees in recent years. Meta, Google, and and many other tech firms have cut back too after spending opulently during the COVID-19 era when interest rates were lowered to help the economy cope.
Xerox outlined the following restructuring plans:
- Core Print Business:
- Simplify our core products to align with the needs of economic buyers of today’s hybrid workplace.
- Increase investment in a partner-enabled go-to-market model that supports how clients prefer to procure their print solutions.
- With partners, pursue strategic market share gains by increasing reach, improving cost to serve, and enhancing profitability.
- Global Business Services:
- Through simplification, drive enterprise-wide efficiency and scalability with centrally coordinated internal processes leveraging shared capabilities and platforms.
- Garner operating leverage and investment capacity for our growth segments through lower transaction costs.
- Improve quality for all business units and functions while focusing on continuous improvement of clients’ and employees’ experiences.
- IT and Digital Services:
- Create greater organizational focus on Xerox’s emerging Digital Services and IT Services capabilities to accelerate revenue diversification toward markets with higher growth and profitability profiles.
- Implement a new multi-segment organizational focus to drive internal alignment and incremental services penetration with existing and prospective clients.
With the inflation we have recently experienced, people are thinking more carefully about what they’re doing with their money and businesses are feeling this. Under these conditions, companies need to adjust how many people they can sustainably employ.
Source: Xerox