Xerox Implements Major Workforce Changes

In a bold move to revitalize its operations, Xerox has announced a significant reduction in its workforce, amounting to 15% of its employees. The company seeks to streamline its expenses and propel its growth trajectory forward. The restructuring will also involve the establishment of a new business services unit, reflecting a fundamental shift in Xerox's approach. By optimizing its core print business and introducing a fresh organizational structure, the company aims to enhance its efficiency in delivering products and services to the market. This strategic transformation, dubbed a "reinvention" by CEO Steven Bandrowczak, signals a new chapter for Xerox. As of October 2023, the company boasted approximately 20,000 employees. In addition to the layoffs, Xerox is realigning its leadership team to steer its novel initiatives. Furthermore, the company's stock experienced a substantial decline following this announcement. Despite maintaining profitability with reported net income of $77 million in its 2023 third quarter, Xerox has faced stagnant growth in recent years. These workforce adjustments at Xerox come in the wake of a broader trend, with 30% of companies implementing layoffs in 2023 and another 21% contemplating similar measures in the near future, according to a survey by Challenger, Gray & Christmas. While the national unemployment rate remains low at 3.7%, signs of a slowdown in job growth are emerging.