Xerox cutting 15% of its global workforce as part of restructuring plan

Xerox Holdings Corporation announced a significant restructuring plan on Wednesday, which includes cutting 15% of its global workforce in the first quarter of 2024.

The decsion will affect approximately 3,000 employees based on the company’s latest headcount.

The company said in a news release that the proposed reductions “will be subject to formal consultation with local works councils and employee representative bodies where applicable.”

Adding, “Xerox is committed to providing transition support for affected employees.”

The layoff are part of a broader strategy to restructure the business and adapt to changing market conditions.

The restructuring focuses on three key areas: stabilizing and improving the core print business, increasing efficiency and productivity through the new Global Business Services unit, and diversifying revenue streams.

“The shift to a business unit operating model is a continuation of our client-focused, balanced execution priorities and is designed to accelerate product and services, go-to-market, and corporate functions’ operating efficiencies across all geographies we serve,” stated Xerox’s CEO, Steven Bandrowczak.

The restructuring is not only limited to workforce reduction but also includes a major change in leadership. John Bruno, President, will now head the integration of print, digital services, and IT services. Louie Pastor, rejoining Xerox, is appointed as Chief Transformation and Administrative Officer, tasked with overseeing the Reinvention Office and the newly established Global Business organization.

Xerox, known for its office machines, has faced challenges in recent years, including an IT security breach and the impacts of the COVID-19 pandemic, which disrupted its business operations and growth strategies.

The layoffs and strategic changes at Xerox mirror broader trends in the digital printing and office equipment industry, as companies adapt to technological advancements and shifts in market demand. The success of these initiatives will be crucial in determining Xerox’s future trajectory in the industry.