Xerox, a digital printing and document management company, announced that it will cut around 15% of its workforce as part of a new operating model this quarter.
Having around 20,500 employees as of December 31, 2022, the layoffs announced on Wednesday will impact approximately 3,075 employees, and shares were reportedly closed down more than 12%, according to a filing with the U.S. Securities and Exchange Commission (SEC).
Reinvention
The company's restructuring plan includes streamlining products in its main print business, improving efficiency in global business services, and emphasizing IT and other digital services, as stated in a release. Xerox also mentioned redesigning its executive team to support the implementation 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.
Xerox plans to simplify its leading products to meet the demands of economic buyers, aiming to enhance cost-effectiveness and profitability. The company intends to invest more in growing areas through its Global Business Services, improve quality across all units, and create positive experiences for clients and employees.
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Three Key Reinvention Priorities
Core Print Business
Xerox plans to simplify its core products to suit the needs of today's economic buyers in hybrid workplaces, increase investment in a partner-enabled go-to-market model that aligns with how clients prefer to acquire their print solutions and collaborate with partners to pursue strategic market share gains by expanding reach, improving cost efficiency, and enhancing overall profitability.
Global Business Services
Xerox plans to enhance efficiency and scalability across the enterprise by simplifying and centrally coordinating internal processes using shared capabilities and platforms. This approach aims to achieve operating leverage and investment capacity for growth segments by reducing transaction costs and improving the quality of all business units and functions, with a commitment to continuously enhancing the experiences of both clients and employees.
IT and Digital Services
Xerox aims to enhance organizational focus on Xerox's growing Digital Services and IT Services capabilities to speed up revenue diversification towards markets that offer higher growth and profitability and implement a new multi-segment organizational focus to ensure internal alignment and increase the penetration of services with both existing and potential clients.
New Organizational Structure
The company has restructured its executive team to back the new operating model. John Bruno will now lead the alignment of Print, Digital Services, and IT Services businesses. Louie Pastor returns to Xerox as Chief Transformation & Administrative Officer, overseeing the Xerox Reinvention Office and the new Global Business Services organization. Flor Colon has been named Chief Legal Officer and Corporate Secretary, effective immediately.
Furthermore, according to the release, Joanne Collins Smee, Executive Vice President and President of Americas, along with Tracey Koziol, Executive Vice President of Global Offering Solutions and Chief Product Officer, have left the company as of December 31, 2023.
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