On Wednesday, Xerox announced a significant workforce reduction, letting go of 15% of its employees in the current quarter as part of the introduction of a new organizational structure.
In a press release, the US-based company stated that these layoffs are a result of implementing a fresh operating model. Xerox emphasized that any proposed staff reductions will undergo a formal consultation process with local works councils and applicable employee representative bodies.
While the exact number of affected employees was not disclosed by the company, CNBC reported an estimated impact on approximately 3,075 employees, based on the workforce size as of December 31, 2022.
Xerox assured its commitment to providing transition support for the affected employees. This move coincides with prevailing expectations in the job market that the trend of widespread layoffs witnessed in recent years will persist into 2024.
The company stated that these layoffs are a result of implementing a fresh operating model
Simultaneously, Xerox has unveiled a new executive team, including Louie Pastor as Chief Transformation and Administrative Officer, and Flor Colon as Chief Legal Officer and Corporate Secretary. This restructuring is part of Xerox’s broader initiative to reinvent itself, featuring the implementation of a new business unit operating model.
Steven Bandrowczak, the Chief Executive Officer at Xerox, explained the company’s strategy, stating, “The evolution of Xerox’s Reinvention aligns our resources in three key areas – improvement and stabilization of our core print business, increased productivity and efficiency through the formation of a new Global Business Services organization, and disciplined execution in revenue diversification.”
Bandrowczak further elaborated that the shift to a business unit operating model is a continuation of their client-focused, balanced execution priorities, designed to accelerate product and services, go-to-market, and corporate functions’ operating efficiencies across all the geographies they serve.