Xerox will be cutting off 15% of its workforce or at least 3,000 employees in the first part of 2024 as part of its "reinvention" plan for a new organizational structure and operational model.
The digital printing service announced on Wednesday that "greater organizational focus" will be given to its IT unit while a "simplification" is expected for its global business services.
Xerox assured that all affected employees will be given "transition support." The latest company report in 2022 indicates that Xerox has roughly 20,500 staff employed worldwide.
The company is open to working with labor councils and employee representatives for formal consultations.
Xerox's shares fell down by 12% after the layoff announcement was made public.
Xerox 'Reinvention' Model: Policies, Focus, and Changes
The changes in the company are brought by the "redesigned and realigned" executive team in an effort to "accelerate" its services, go-to-market, and corporate function efficiency.
Among the core changes will be to "simplify" its core products "to align with the needs of economic buyers of today's hybrid workplace."
Xerox said its "reinvention" plans are part of its business model to continue our "client-focused, balanced execution priorities."
Louie Pastor has been appointed to lead the company reinvention and the handling of the newly-established Global Business Services organization.
Related Article: Yahoo Will Be Laying Off More Than 1,600 Employees
Tech Layoffs Continue in 2024
The layoffs in Xerox marked the continuation of the batch of layoffs in many tech companies amid slow growth over the past year.
Many of the biggest layoffs that happened in 2023 also came from major tech firms, reaching tens of thousands of employees displaced in the span of a year.
Most layoffs were made in January last year with 84,714 staff dismissed from their positions.
Economic experts believe the same will happen in January this year as big techs like Amazon, Google, and Microsoft lacking the momentum to rebound from the recession, TechCrunch reported.
Also Read: Spotify Cuts Off 1,500 Employees to Shrink Costs Amid Slowed Growth
