Xerox Laying Off 15 Percent Of Workforce As Part Of ‘Reinvention’
The cuts at the printer and copier giant would amount to more than 3,000. 'Printing has changed a great deal in the last few years and with it, so too must the printer manufacturers,’ one partner tells CRN.
Xerox Holdings Corp. said Wednesday it will cut 15 percent of its workforce, a little more than 3,000 employees, this quarter as the printer and copier giant announced a new operation model and shift in organizational structure.
The Norwalk, Conn.-based firm had 20,700 employees as of June 2023, according to a regulatory filing last August, which would mean about 3,100 jobs cut. A Xerox spokesperson declined to comment on what departments and regions were impacted.
“The evolution of Xerox’s reinvention aligns our resources in three key areas – improvement and stabilization of our core print business, increased productivity and efficiency through the formation of a new Global Business Services organization, and disciplined execution in revenue diversification,” said Xerox CEO Steven Bandrowczak in a statement.
A Xerox spokesperson told CRN in an email that the “proposed reductions will be subject to formal consultation with local works councils and employee representative bodies where applicable. The decision to reduce our global workforce was a difficult but necessary step toward establishing long-term viability for Xerox. Xerox is committed to providing transition support for affected employees.”
Joanne Collins Smee, EVP and president, America; and Tracey Koziol, EVP of global offering solutions and chief product officer, have also departed the company effective Dec. 31, 2023, according to a news release. When asked by CRN if Collins Smee and Koziol’s departures were a part of the layoffs, the Xerox spokesperson said they would not be commenting further on the matter.
As part of its redesign and realign operating model, the new leadership team includes John Bruno who will lead the enterprise alignment of print, digital services and IT services businesses; Louie Pastor as chief transformation & administrative officer who will oversee the Xerox reinvention office and the newly created global business services organization; and Flor Colon, who has been tapped as chief legal officer and corporate secretary.
Under the new reinvention model, Xerox said it will be focusing on three priorities. Its core print business will simplify core products, have an increased investment in a partner-enabled go-to-market model and pursue strategic market share gains by increasing reach, improving cost to serve and enhancing profitability.
In its most recent third quarter in 2023, Xerox reported $1.65 billion in sales, a nearly 6 percent drop from the year before.
While the changes to the workforce are meant to set the company up for a more prosperous 2024, not all partners are happy with the cuts.
“The abrupt end to the e-concierge program was disappointing for both partners and end clients. It broke trust and faith in Xerox and the products they deliver for those involved in the program,” Dawn Sizer, co-founder and CEO of Mechanicsburg, Pa.-based 3rd Element Consulting, Inc., told CRN.
The E-concierge program, which tracked an end user's printing fleet needs and let the customer order supplies through a preferred MSP’s e-commerce portal, was discontinued on Dec. 31, according to Xerox’s website.
“That said, printing has changed a great deal in the last few years and with it, so too must the printer manufacturers,” Sizer said. “It will be interesting to see how print companies shift into service delivery when that has never been their focus previously.”
The cuts come just after news that a cyberattack affected its Xerox Business Solutions U.S. subsidiary. The company declined to comment Tuesday on whether partner or customer data was impacted in the breach. The attack impacted IT environments belonging to the U.S. operations of XBS, according to Xerox.