Xerox to lay off 15% of workforce as it reorganizes

Jan. 3 (UPI) -- Office document giant Xerox said Wednesday that it plans to lay off about 15% of its workforce while implementing what it is calling a new operating model.

While Xerox did not provide a specific number of employees in the announcement, CNBC estimated the total to be about more than 3,000, based 20,500 employees it claimed in the company's Securities and Exchange Commission filing at the end of 2022.

The statement said the layoffs will happen in the first quarter of this year.

Steven Bandrowczak, Xerox's CEO, said its realignment will focus on three areas: improvement and stabilization of the core print business, increasing productivity and efficiency through its new Global Business Services, and revenue diversification.

"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," he said.

Xerox said it will want to simplify its core products to meet the needs of the economic buyers, while improving cost and profitability. Through its Global Business Services, the company said it wants to invest more in growing areas, improve quality in all of its units, and concentrate on positive client and employee experiences.

The company named a new leadership team, as well, which includes John Bruno as president and CEO, Xavier Heiss, as chief financial officer and Louie Pastor as chief transformation and administrative officer.

"Effective immediately, John Bruno will lead the enterprise alignment of print, digital services and IT services businesses," Xerox said in its statement.

"Louie Pastor returns to Xerox as chief transformation and administrative officer, charged with overseeing the Xerox Reinvention Office and the newly established Global Business organization."