Dive Brief:
- Xerox plans to lay off 15% of its workforce during the first quarter of the year as it reshapes its operating model, the company said Wednesday. The company employed 20,500 workers as of December 2022, meaning roughly 3,075 employees will be impacted.
- The cuts will reach all levels and areas of the organization, a spokesperson said via email. "The decision to reduce our global workforce was a difficult but necessary step toward establishing long-term viability for Xerox," the spokesperson said.
- As part of the restructuring, the company tasked President and COO John Bruno with leading the alignment of the company's print, digital services and IT services units. Former Xerox executive Louie Pastor, who departed the firm in April, will also return to the company to serve as chief transformation and administrative officer.
Dive Insight:
Xerox's proposed restructuring process comes after a revenue dip during the third quarter of 2023. The company's revenue fell 7.4% year over year, for the period ending Sept. 30.
CEO Steve Bandrowczak shared the preliminary framework of Xerox’s transformation plan, dubbed Reinvention, during an earnings call Oct. 24.
"Reinvention does not mean we are abandoning our core print business, which we expect to continue generating strong profits and cash flow for many years," said Bandrowczak. "Reinvention means building new capabilities on top of a solid print core."
The shift in operations will simplify the company's core printing business, and increase focus on its emerging digital and IT services.
Over the weekend, Xerox also disclosed a cyber intrusion that impacted its Xerox Business Solutions subsidiary, Cybersecurity Dive reported. The attack, detected and contained by company personnel, led to the unauthorized access of a limited amount of personal data, the company said.
Xerox's headcount trim is the first of the year among large technology players. Last year, more than 1,100 tech companies carried out layoffs, impacting nearly 262,000 employees, according to Layoffs.fyi.
Despite the cuts, technology talent remained in demand through much of the year, with IT unemployment nearing historic lows at 1.7% in November.
