Xerox Announces Restructuring, Including 15% Workforce Layoffs

In a significant shift in strategy, Xerox, a global powerhouse in digital printing and document management, announced that it will reduce its workforce by 15%. This decision is part of a broader restructuring plan to introduce a new organizational structure and operating model it dubs a “reinvention,” aimed at future-proofing its business operations amid the rapidly evolving digital landscape.

This announcement comes as the company seeks to reinforce its position in the global digital market and follows its latest filing with the U.S. Securities and Exchange Commission, which indicated a workforce of around 20,500 employees worldwide. With this data in mind, nearly 3,075 employees are projected to be affected by these layoffs.

On the financial front, the announcement had significant repercussions for the company’s share value. Xerox’s stock suffered over a 12% drop following the announcement, as investors reacted to the news of the drastic restructuring measures.

The restructuring plan extends beyond mere workforce reductions and introduces a deeply transformative strategy for the company’s future operations. Key elements of the plan include a crucial simplification of its main print business, primarily focusing on a more streamlined product portfolio. Xerox also intends to ramp up its efficiency across all global business services, pushing toward leaner, more cost-effective operations.

Taking a big step forward into the digital era, Xerox also commits to bolstering its focus on IT and other digital services. Recognizing the increasing significance of IT in the modern market, the company is prepared to allocate significant resources to expand this area and remain competitive.

To successfully carry out these changes, Xerox has revamped its leadership team, demonstrating its commitment to effectively implement the new model. The executive reshuffle aligns with Xerox’s focus on agility and adaptability in response to market demands and will be instrumental in driving the bold new direction of the company.

As conveyed by the company’s top leadership, this transition to a business unit operating model underscores Xerox’s commitment to a balanced approach and the indispensable focus on customer needs. The redefined strategic approach aims to boost operating efficiencies across product and service offerings, market engagement strategies, and various corporate functions.

Xerox plans to commence the layoffs within the current fiscal quarter. The time frame for the complete implementation of the broader restructuring plan remains undefined, reflecting the company’s commitment to a careful and considered approach to these significant changes.