Xerox Layoffs, Business Reorg And Exec Shuffle: 5 Things To Know

Print, copy, and services giant Xerox says it is looking for ways to improve its business efficiency and how it works with clients via what it calls Xerox’s “reinvention,” which includes sweeping changes at the executive level, big layoffs, and a reorganization of some of its business functions.

'Reinventing' Xerox

Xerox Holdings Corp. Wednesday reorganized its business as part of what it calls its “reinvention,” aimed at better aligning its resources. Along with the reinvention, the Norwalk, Conn.-based services provider and printer and copier heavyweight also made significant changes in its executive leadership team and said it plans to lay off about 15 percent of its workforce – which could amount to more than 3,000 jobs.

The plans, which includes reorganizing the business around areas, are key for helping Xerox execute more efficiently and better serve customers going forward, said Xerox CEO Steven Bandrowczak in a statement.

“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,” Bandrowczak said. “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.”

[Related: Xerox’s 6 Most Highly Compensated Executives In 2022]

Significant changes from the Xerox “reinvention” include the development of a new Global Business Services function to simplify how the company does business, along with a sweeping re-organization of its executive suite which will has led to multiple multiple changes in the top roles as well as the departure of at least two long-term executives. The changes will also see Xerox lay off about 15 percent of its workforce.

A Xerox spokesperson responded to a CRN request for more information by saying that changes in how Xerox reports its finances have yet to be determined. The company currently breaks out its revenue by “print and other” and “financing (FITTLE).” Revenue is also broken out according to “equipment sales” and “post sale revenue.

Here are some key details about Xerox’s latest moves.

Major Layoffs On The Way

As a part of Xerox’s “reinvention,” the company plans to lay off about 15 percent of its workforce this quarter. Xerox had about 20,700 employees as of June 2033, according to an August regulatory filing, so that would imply the company will lay off about 3,100 people.

Xerox did not specify which departments or geographies would be impacted by the layoffs. However, the company did say that proposed reductions would be subject to formal consultation with local works councils and employee representative bodies where applicable.

Xerox’s headcount has been steadily dropping as printer and copier sales have also decreased. At the end of 2022, the company had approximately 20,500 employees, which was a reduction of approximately 2,800—or about 12 percent --from the year before, according to a regulatory filing.

In its most recent third quarter in 2023, Xerox reported $1.65 billion in sales, a nearly 6 percent drop from the year before.

Xerox Forms A New Global Business Services Function

A major part of the reorganization is the realignment of Xerox’s resources into three new areas. Included in these is a newly-formed function called Global Business Services. A Xerox spokesperson told CRN via email that Global Business Services is a support function for Xerox’s customer facing activities including financing, and not a separate division or business unit.

Headed by Xerox Chief Transformation and Administrative Officer Louie Pastor, Global Business Services going forward will be focused on simplification to drive enterprise-wide efficiency and scalability with centrally coordinated internal processes leveraging shared capabilities and platforms. GBS is also charged with reducing transaction costs to help Xerox leverage and invest in its growth segments, and with continuously improving clients’ and employees’ experiences.

Better Defined The Core Print Business And IT And Digital Services Business Lines

While Xerox unveiled its new Global Business Services function, the company left its two primary business lines, Core Print Business and IT and Digital Services, pretty much intact. Both are under the leadership of John Bruno (pictured), Xerox’s president and chief operating officer.

Xerox’s Core Print Business focuses on developing and simplifying its core products to meet the needs of hybrid workplaces. It is increasing investment in a partner-enabled go-to-market model to support how clients prefer to procure print solutions, and is enhanced with a partner strategy to increase reach, improve cost to serve, and enhance profitability, the company said.

Xerox’s IT and Digital Services aims to provide focus on Xerox’s emerging digital services and IT services capabilities as a way to increase diversification toward higher growth and higher profitability markets. It also is charged with implementing a new multi-segment organizational focus to drive internal alignment and incremental services current and future customers.

Executive Changes: Many New Roles

Xerox is making several major changes in its executive suite as a result of the reorganization, including some new hires, some changes in title of existing executives, and the departure of at least two executives.

These include:

Executive Changes: Leaving Xerox, Or Staying Put

At least two executives have left Xerox, effective December 31. Xerox declined to state the reason for their departures. They include:

Xerox declined to say whether Smee and Koziol left on their own accords or were let go.

Keeping their existing roles at Xerox are: