Xerox will reduce workers by 15% as part of a reinvention strateg

Xerox plans to lay off 15% of its personnel to reduce expenses and boost growth, while also launching a new business services unit and implementing a new structure.

In an effort to reduce expenses and spur growth, Xerox, a struggling provider of digital printing, plans to lay off 15% of its personnel.

In addition to launching a new business services unit, Xerox announced on Wednesday that it is implementing a new operating model and organizational structure with the goal of strengthening its core print business. In a statement, Xerox CEO Steven Bandrowczak called the company's strategic pivot a "reinvention" and stated that it will improve the company's capacity to effectively bring goods and services to market.

The official website of Xerox states that as of October 2023, the corporation employed about 20,000 people.

The business said that, in order to forward its new strategy, it is reorganizing its leadership group. The enterprise alignment of Xerox's print, digital, and IT services businesses will be headed by John Bruno, president and chief operating officer. Chief transformation officer at Xerox, Louis Pastor, will be in charge of the new global business services division.

In morning trading, Xerox shares dropped by over 10% to $16.19. Xerox's development has halted recently, despite the corporation being profitable — it reported net profits of $77 million in its third quarter of 2023.

According to a recent survey by outplacement agency Challenger, Gray & Christmas, nearly 30% of employers reported layoffs in 2023, and 21% said they will likely make cuts this year.