- Over the next three months, Xerox announced plans to cut its global workforce by 15%, equating to about 3,500 employees.
- The iconic tech company has sought to pivot amid economic challenges.
- The layoffs represent cost-cutting Xerox sees as key to streamlining and reinventing itself.
Xerox to cut worldwide workforce
Iconic document solutions company Xerox has unveiled plans for a substantial “reinvention” that will impact much of its global workforce.
The storied tech firm, founded in 1906, announced this week that it will reduce its headcount by approximately 15% over the next three months.
With around 23,000 total employees, according to recent financial statements, this would equate to nearly 3,500 job cuts worldwide.
Xerox share prices sank over 10% on the news, reflecting investor concern over the workforce reduction and what it signals about the company’s trajectory.
A long pivot
Once virtually synonymous with photocopying, Xerox has sought to pivot its business toward more modern digital services and technologies in recent years.
However, the company has faced economic challenges, including dampened demand during the pandemic and intense competitive pressures.
In an interview last year, Xerox CEO Steve Bandrowski framed such difficulties as “opportunities” to transform the organization.
At least profits are rolling in
While still profitable – Xerox posted an adjusted net income of $77 million last quarter, up 73% year-over-year – the legendary brand is poised for a period of profound transition.
The impending layoffs represent cost-cutting measures viewed as necessary for Xerox to streamline operations and reinvent itself for the future.
