Mass Layoffs at Xerox; Share Plummets After Workforce Reduction Announcement

Xerox said on Wednesday that it would be implementing a new organizational structure and operating model, which includes a 15% employee reduction.

As of December 31, 2022, Xerox, a provider of document management and digital printing services, employed roughly 20,500 people, according to a filing with the U.S. Securities and Exchange Commission. This number indicates that 3,075 employees will be affected by the layoffs on Wednesday.

Following the announcement on Wednesday, Xerox’s shares finished lower by over 12%.

As to the announcement, the company’s restructuring plan entails streamlining its products within its core print business, optimizing efficiency throughout its global business services, and intensifying emphasis on IT and other digital services. In order to support the new paradigm, Xerox claimed to have likewise reorganized its executive staff.

The announcement states that Xerox will implement the reduction this quarter. Beyond the statement, an official from Xerox remained silent.

The year 2024 will see a lot of mass layoffs as per the experts. Last year, many companies issued WARN notices in their respective states affecting thousands of lives. This trend will not finish until half of this year.