Facing financial difficulties and falling revenues, Xerox announced yesterday the implementation of a restructuring plan, in order to focus on its most profitable activities. This restructuring will involve the dismissal of 15% of the company’s workforce. Xerox is…
Facing financial difficulties and falling revenues, Xerox announced yesterday the implementation of a restructuring plan, in order to focus on its most profitable activities. This restructuring will involve the dismissal of 15% of the company’s workforce.
Xerox restructures to reconnect with past successes
According to a filing filed by Xerox with the SEC, the company had 20,500 employees as of December 31, 2022. Assuming that this figure has changed little or not at all, the company would intend to part ways with just over 3,000 employees. . Xerox announced that it would support laid-off employees, without specifying how. She also did not provide information on the positions and countries concerned, but specified that the process would begin this quarter.
The firm’s restructuring plan consists of simplifying the design of its flagship products within its historic activity, printing. In a statement, Xerox said it would focus in the coming months on areas like IT and digital services, and move away from those that don’t make money. Finally, the group reshuffled its management team so that it could achieve these new objectives.
From now on, John Bruno, Chief Operating Officer of Xerox, will be responsible for solidifying the company’s activities related to printing, IT and digital services. To take care of the transformation and administration of the group, Louie Pastor, the former director of corporate development and legal director of the company until last April, returned. Note the departures of Joanne Collins Smee, president of the Americas region, and Tracey Koziol, executive vice president of global offering solutions and chief product officer.
As Steven Bandrowczak said in a statement, “ The move to a business unit operating model is a continuation of our balanced, customer-focused execution priorities. It was designed to accelerate the operational efficiency of products and services, marketing and business functions across all geographies we serve ».
Known for inventing the xerographic photocopier, Xerox has been experiencing difficulties for several years. The firm attempted a poker move in 2020 looking to acquire HP, the leader in printing, which at that time had a turnover five times greater than its own. Nevertheless, Covid-19 got the better of the operationwith the pandemic affecting the economy of an already declining sector, and forcing both companies to focus on their own management.