(CTN News) – The restructuring plan announced by Xerox on Wednesday includes a significant reduction in its workforce, with a goal of cutting 15% of its employees.
With around 20,500 employees as of December 31, 2022, this means that approximately 3,075 employees will be impacted by the layoffs.
The news of the job cuts had an immediate effect on shares, which saw a decline of over 9%. This indicates that investors were unhappy with the announcement and may have concerns about the company’s future prospects.
The restructuring plan itself involves several important changes to Xerox’s organization and operating model. One of the main focuses is simplifying its products in the core print business, suggesting that the company may be consolidating its offerings and concentrating on its most profitable areas.
Efficiency in global business services is also a priority, indicating that Xerox is aiming to improve its operations and reduce costs in this area. This could involve streamlining processes, optimizing resources, and potentially outsourcing certain functions.
Another significant aspect of the restructuring plan is the increased emphasis on IT and other digital services. This suggests that Xerox recognizes the growing importance of technology in its industry and is looking to take advantage of this trend. By investing in digital services, the company may be seeking to diversify its offerings and adapt to changing customer needs.
To facilitate the implementation of the new model, Xerox has restructured its executive team. This shows that the company is committed to executing its restructuring plan and ensuring its success.
By bringing in new leadership, Xerox may be seeking to inject fresh ideas and expertise into the organization.
Xerox CEO Steven Bandrowczak emphasized in a statement that the transition to a business unit operating model aligns with their client-focused approach. This suggests that the restructuring plan is aimed at better serving customers and meeting their evolving needs.