Xerox Set for Major Changes: 15% Workforce Reduction and Organizational Overhaul
Xerox declared on Wednesday that it is restructuring its operating model and organizational structure, which would result in a 15% reduction in staff.
The technology and software company wants to introduce a new organizational structure and operational model, which led to the suggested layoffs.
According to a filing with the Securities and Exchange Commission, Xerox had around 20,500 employees worldwide as of December 31, 2022. This means that more than 3,000 people are anticipated to be impacted by the layoffs.
Following the announcement of the layoffs, Xerox shares fell during lunchtime trade. The company’s new operational model includes a focus on streamlining its key products to better meet the demands of customers in the modern, hybrid workplace.
Furthermore, according to Xerox, it wants to boost efficiency and productivity by creating a new global business services organization and concentrating more on its IT and digital services.
“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 Steven Bandrowczak, CEO of Xerox.
Additionally, the company announced that it has “redesigned and realigned its executive team to support the new operating model,” adding three recently hired executives to the group. This comes one month after the company lost three executives.
The company, which is located in Connecticut, promised to help affected employees during the changeover. Additionally, the planned changes are “subject to formal consultation with employee representative bodies and local works councils, where applicable.”