Xerox to cut 15% of workforce in Q1 2024 restructuring

UNITED STATES: Xerox Holdings Corporation, a manufacturer of printers and copiers, has revealed plans to restructure its operations, including a workforce reduction of 15%.

The restructuring aims to implement a new organizational framework and operating model.

With approximately 20,000 employees as of October 2023, the proposed workforce reduction would impact over 3,000 positions, according to information available on Xerox’s website.

In an official statement issued on Wednesday (3 Jan), the NASDAQ-listed company outlined its the restructuring strategy, which encompasses streamlining its core print business, enhancing operational efficiency across global business services, and intensifying its focus on IT and digital services.

Xerox has revamped its executive team to facilitate the execution of this new model.

″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,” Xerox CEO Steven Bandrowczak said in the release.

Regarding its core print business, Xerox aims to simplify products to better suit the needs of modern economic buyers in hybrid workplaces.

The company also intends to elevate investment in a partner-centric go-to-market approach that aligns with client preferences for procuring print solutions.

Collaborating with partners, Xerox is targeting strategic market share expansion by broadening its reach, optimizing service costs, and augmenting profitability.

Xerox emphasized that its Global Business Services unit will drive enterprise-wide efficiency and scalability through simplification, utilizing centrally coordinated internal processes leveraging shared capabilities and platforms.

The company seeks to generate operational leverage and investment capacity for growth segments by reducing transaction costs while enhancing quality across all business units and functions, focusing on continuous improvement in customer and employee experiences.

In the realm of IT and Digital Services, Xerox aims to intensify its organizational focus on emerging capabilities in these domains to accelerate revenue diversification into markets offering higher growth and profitability profiles.

Additionally, the company plans to implement a new multi-segment organizational approach to enhance internal alignment and increase service penetration among existing and potential clients.

In recent years, Xerox has faced challenges adapting to the digital era, particularly with declining demand for ink and printed documents.

Under the leadership of former CEO Ursula Burns, the company aimed to bolster its business services by optimizing document flow in sectors like human resources and healthcare and managing payment systems.

However, divestments and market competition impacted its profits, leading to strategic shifts, including the sale of its 3D printing business unit in August 2023.

Furthermore, Xerox had proposed mergers and acquisitions in the past, notably with Fujifilm and HP, but these attempts were terminated due to concerns raised by shareholders and rejection by the respective companies citing various reasons including undervaluation and financial health.